MSP and VMS in Healthcare Staffing: Similarities and Differences?

Explore the pivotal roles of Managed Service Providers (MSP) and Vendor Management Systems (VMS) in transforming healthcare operations.

In the dynamic healthcare sector, staffing plays a pivotal role in ensuring the delivery of high-quality patient care. Adequate healthcare staffing involves strategically placing skilled professionals, such as doctors, nurses and respiratory therapists, to match the fluctuating demands of medical facilities. This complex process not only addresses the immediate patient needs but also supports the long-term goals of healthcare institutions, striking a delicate balance to maintain a proficient workforce.

As the industry continues to evolve and patient needs change, the role of innovative staffing solutions becomes increasingly essential. These solutions are the key to optimizing operational efficiency and enhancing patient outcomes, ensuring that the healthcare sector can adapt to the changing landscape. 

Challenges Faced in the Healthcare Sector

Navigating the intricate landscape of the healthcare sector presents various challenges that require constant adaptation and management by healthcare managers. These challenges can significantly impact the operational efficiency and quality of patient care within healthcare facilities. Some key staffing challenges that healthcare facilities are currently facing are: 

• Shortage of skilled professionals.
• Temporary and contingent staffing inefficiencies.
• High turnover rates.
• Burnout and Job stress.
• Geographical disparities.
• Regulatory and Compliance issues.

Additionally, the number of staffing agencies used by companies is leaving hiring managers struggling to manage multiple agencies under multiple contracts, all with different contract terms and requirements. The amount of vendor information regarding qualifications, hours worked, the number of positions to be filled, and the varying compensation packages is becoming increasingly difficult for managers to streamline.

Managers' ability to anticipate and mitigate these challenges is crucial to maintaining the overall effectiveness and sustainability of healthcare operations. Various solutions can be implemented to help managers address the challenges above. To discover how these solutions will optimize your healthcare staffing process today, continue reading.

Understanding MSP and VMS in the Healthcare Sector

Although many solutions are available to help address and solve the challenges presented above, two solutions that dominate the healthcare industry are Managed Service Providers (MSP) and Vendor Management Systems (VMS). 

Managed Service Providers (MSP): MSPs, as external third-party entities, are primarily responsible for managing a company's contingent workforce. However, their role extends far beyond this, as they offer a comprehensive array of services that aim to optimize and oversee the entire company. From creating job descriptions and open positions to on-boarding and credentialling, and finally to invoicing and reporting, MSPs leave no aspect of workforce management unattended. These services are performed by a group of human experts who typically utilize software platforms like a VMS solution to further enhance their management objectives.

Vendor Management Systems (VMS): VMS is a cloud-based software system that streamlines and automates the entire contingent workforce. Its features include the capability to manage the entire staffing process, from the initial on-boarding and recruitment to the final invoicing and billing. It also streamlines and automates the vendor management process, empowering healthcare facilities to nurture their vendor relationships effectively, monitor performance, and uphold regulatory compliance standards.

Both solutions allow managers to focus on their strategic objectives while leaving the tedious process of sourcing new staff to the professionals. Managers can confidently rely on either an MSP or VMS solution to optimize their staffing needs and ensure the selection of top-tier talent.

Key Functions of VMS in Healthcare Staffing

VMS software is vital in optimizing the vendor management process in healthcare facilities. There are many important features that a VMS solution brings to healthcare staffing; however, industry experts select these features as the most critical in a healthcare VMS:

Vendor selection and on-boarding: VMS, a reliable tool, helps healthcare facilities identify and on-board vendors based on specific requirements, ensuring they meet both internal and legal quality and compliance standards. Managers can streamline the vendor selection process, carefully assessing each vendor's qualifications, experience, and adherence to regulatory guidelines.

Performance tracking: VMS monitors and evaluates vendor performance by tracking key performance indicators and metrics to assess vendor efficiency and effectiveness and identify improvement areas. This data-driven approach enhances vendor accountability and allows managers to proactively address issues before they impact patient care.

Contract management: The VMS software simplifies the management of contracts, encompassing negotiations, renewals, and terminations, to guarantee adherence to all contractual terms and conditions. This meticulous oversight minimizes the likelihood of discrepancies or misunderstandings, ensuring seamless operations within healthcare facilities.

Compliance monitoring: VMS helps healthcare facilities ensure that vendors adhere to regulatory requirements and industry standards while maintaining a high quality and performance level in their service delivery. By systematically tracking vendor performance metrics and key indicators, VMS enables healthcare facilities to proactively address any issues and uphold the highest standards of care for their patients.

Cost management: With VMS offering transparency into vendor expenses, healthcare facilities can fine-tune their budget allocation and secure advantageous agreements. By harnessing the analytical power of VMS, healthcare facilities can confidently navigate vendor selection, contract negotiations, and cost-effective strategies.

Key Functions of MSP in Healthcare Staffing

Talent Acquisition: MSPs work tirelessly to streamline recruitment by sourcing, screening, and placing qualified healthcare professionals in the right roles on behalf of a company when demand calls for them. By using advanced technology and data analytics, they are able to match only the qualified candidates to jobs while successfully wheening out unqualified candidates or those who do not align with business objectives. 

Enhanced analytic capabilities: Leveraging data analytics provides insights into workforce trends and performance metrics that are key in determining where efficiencies and inefficiencies lie. This assists healthcare facilities in making informed, proactive decisions about staffing needs, identifying important areas for improvement, and planning accordingly to future demand requirements. 

Quality Assurance: Companies can ensure that the healthcare professional assigned to their company meets its standards by relying on a third party to implement quality control measures. MSPs monitor quality assurance through performance monitoring and feedback and promptly address issues to maintain a high quality of patient care. 

Scalability and Flexibility: MSPs offer scalable staffing solutions that can adapt to the fluctuating needs of any healthcare facility. They provide the flexibility to scale up quickly and down the workforce based on industry demands, ensuring staffing levels align with patient care requirements.

Although the features have been divided by the solution, it is important to note that most of these benefits are present in both a VMS and an MSP solution. 

Future Trends of MSP and VMS in Healthcare

The future of healthcare is advancing toward a transformative era characterized by groundbreaking technological advancements and innovations. With rapid developments in technology, the industry is leveraging these advancements to redefine the delivery of patient services, thereby improving patient outcomes, streamlining staffing operations, and reducing operational costs.  The future of MSP and VMS in healthcare looks promising, with several emerging trends:

Artificial Intelligence (AI) and VMS

MSPs and VMS will likely leverage advanced analytics techniques, such as artificial intelligence (AI) , to derive valuable insights and improve decision-making.

Predictive Analytics: MSP and VMS solutions will have the capabilities to use AI and ML to predict future changes in staffing needs and proactively identify gaps to enhance the contingent workforce. 

Talent Matching: AI and ML algorithms will match qualified healthcare workers based on qualifications, credentials, and requirements to companies with suitable job openings matching their experience. 

By leveraging these cutting-edge technologies, MSPs and VMS will enhance their capabilities in recognizing and addressing challenges and revolutionize how healthcare facilities manage their staffing needs. The seamless integration of AI and ML will precisely empower the prediction of future staffing requirements, efficiently matching qualified healthcare professionals to the right roles. With these advancements, MSPs and VMSs are poised to lead the way in transforming healthcare staffing operations, maximizing efficiency, and driving overall operational excellence in the healthcare industry.

VMS & Remote Workers

With the growth of telehealth services and services that bring care to the patient, MSPs and VMS are expected to play a crucial and secure role in managing the contingent workforce and vendor relationships associated with telehealth platforms. The healthcare staffing industry should expect significant advances as these services grow in bandwidth and intellectual capabilities. 

Virtual Staffing Processes: As telemedicine continues to expand, healthcare professionals now have the opportunity to work remotely and efficiently manage virtual workforces. If the demand for virtual staffing grows, staffing companies must prioritize sourcing qualified professionals who can excel in remote work environments. Fortunately, MSPs and VMS solutions are well-positioned to meet this new demand, providing companies with these workers quickly and efficiently. 

Remote Management Capabilities: VMS platforms will have capabilities embedded in their software to manage and monitor virtual staff, just as it does with in-person healthcare workers. The software will be able to provide the same level of comprehensive credential and compliance management.