Today’s healthcare contingent workforce is diverse- spanning across departments from nursing to IT. In addition to short term assignments, there are also many SOW programs operating on a project basis. Often, these programs are to address a specific business initiative such as implementing new technology. Despite their business need, many of these programs never see fruition. Often, this is due to skyrocketing labor costs that are outside of the budget, fragmented workforce management, and a lack of critical insight into SOW project milestones. To encourage SOW success, consider a partnership with a vendor neutral MSP.
Gain an SOW Advantage with a Vendor Neutral MSP
Health systems have long known that the best practice to manage their contingent workforce is to partner with a vendor neutral MSP. Yet, often SOW is left out of managed services programs. Many departments consider that SOW is a project basis and therefore, doesn’t carry the same risk as engaging contingent workers such as nurses. However, there is still great risk of engaging SOW workers outside of a traditional managed services program. This can include noncompliance, rogue spend, and the threat that a project will not see completion. Consider the following ways a vendor neutral MSP can encourage SOW success:
- Increase transparency into project milestones. In partnership with a vendor neutral MSP, health systems can gain valuable insight into project milestones. This can be done through the VMS system. Within this technology, a vendor neutral MSP can set up project milestones, increase visibility into project spend, and keep track of the entire project’s life cycle. Strategic analytics can notify stakeholders to potential missed deadlines that may incur financial penalties. This can encourage a successful SOW project and mitigate risk of failure.
- Provide enhanced compliance. Central to any managed services program is compliance. A vendor neutral MSP partner is skilled in risk mitigation, cautious to ensure all compliance documentation is gathered prior to an SOW’s start date to ensure compliance with all state, federal and oversight agency regulations such as the Joint Commission. Often, when SOW workers are engaged, a hiring manager is responsible for this process. This could lead to missed opportunities to ensure these workers are compliant with not only health system guidelines but regulatory bodies’ guidelines. With a vendor neutral MSP managing this process, health systems can ensure they will be compliant and that documentation will be available in one central repository in case of an audit.
- Reduce costs associated with engaging SOW workers. One of the largest threats to the successful completion of an SOW project is cost. Rogue spend can easily occur when there is no third party oversight. This is because many departments may be involved in a project, each billing SOW workers to different cost centers. These departments may all engage different suppliers to obtain talent, or engage different consultants, which may drive up the cost of engaged SOW workers. When a vendor neutral MSP manages this process, they can reduce costs associated with engaging SOW workers. A vendor neutral MSP often has a network of thousands of suppliers with whom they partner. By opening up requisitions to a larger network, health systems can gain SOW workers at more competitive rates. They also can mitigate the risk of rogue spend by using a vendor neutral MSP as third party oversight. By reducing costs, a managed services program can greatly enhance the success of an SOW project.
- Mitigate risk of non-employee misclassification. In recent years, the U.S. Department of Labor (DOL), the IRS, and 35 states have joined together to combat misclassification of workers. The consequences of misclassification can include fines, penalties, and lawsuits. When hiring managers make non-employee classification decisions, they run the risk of making a misclassification. This is because they’re experts in their field, but not necessarily in non-employee classifications. In partnership with a vendor neutral MSP, health systems gain access to teams of experts that can validate 1099 consultants’ businesses and make skilled determinations to mitigate risk for the health system. Absent the expertise of a vendor neutral MSP, a health system may risk making a misclassification, derailing an SOW project and threatening the health system at large.
- Align SOW projects with health system goals. When a vendor neutral MSP manages SOW worker engagement, health systems can be sure that the project will align with larger health system goals such as diversity. As third party oversight, a vendor neutral MSP has one eye on the bigger picture at all times in order to mitigate risk and achieve these goals. In alignment with larger health system goals, an SOW project is more likely to be successful and see completion.
As more health systems seek to accomplish new goals such as implementing new technology, they run the risk that their SOW projects will be unsuccessful. In partnership with a vendor neutral MSP, health systems can encourage more successful SOW projects and mitigate risk. Contact the leading healthcare-focused vendor neutral MSP, RightSourcing, for a free workforce analysis and find out how to improve your health system’s SOW projects.