How Can a Healthcare MSP Take Risk Off the Balance Sheet?

Becker Hospital Review’s recent CEO + CFO Roundtable offered perspectives on a persistent theme- how can a health system take risk off the balance sheet?  Leaders gathered to discuss best practices and innovative approaches towards mitigating risk in a changing environment.  One such consideration offered was that outsourcing contingent workforce management to a healthcare MSP could assist health systems in taking risk off the balance sheet. Is your health system aware of the ways in which a healthcare MSP can better mitigate risk in contingent labor programs?

Better Risk Mitigation with a Healthcare MSP Partnership

Growing contingent labor programs are rife with complexities that could increase undue risk for a health system.  When managed by hiring managers, opportunities exist that could potentially erode compliance, expose health systems to misclassification errors, and more.  This is why it’s so important to practice good contingent workforce management.  By outsourcing this function to a healthcare MSP, health systems are able to obtain guidance from experts in the field, implementing best practices gained from managed services programs across the nation.  Consider the following ways in which a healthcare MSP can enhance your health system’s risk management:

  • Improve healthcare compliance. A healthcare MSP is skilled at compliance.  Certified by the Joint Commission, experts such as RightSourcing know how critical it is to gather the right compliance documentation and to provide them in an easily accessible location should auditors arrive on site.  When this function is managed by a hiring manager, compliance may erode because they assume a supplier will worry about this documentation.  Yet not all suppliers are invested in ensuring each contingent worker is compliant.  During the requisition and engagement process, a healthcare MSP has teams of individuals who are actively screening documents, verifying credentials, and communicating with candidates and suppliers to gather everything necessary to ensure the contingent worker is qualified to be on site and render superior patient care. This is further enhanced by teams who continue to track credentials and ensure documentation is up to date.
  • Business Validation. A growing area of risk is non- employee misclassification. The IRS and the Department of Labor have partnered to aggressively pursue misclassifications within a changing work environment. Fueled in part by the growing “gig economy”, misclassifications have threatened the health of organizations large and small.  By partnering with a healthcare MSP, health systems can gain peace of mind that they have a trusted team to validate consultants’ business documentation, duties, and more to suggest an appropriate non- employee classification.  When hiring managers make these determinations, they could unknowingly be making a risky misclassification that could cost a health system millions of dollars in fines, penalties, audits and lawsuits.  To take this area of risk off the balance sheet, it’s important to engage your healthcare MSP partner and proactively determine how to protect the health system.
  • Standardize systems and processes. When systems and processes are fragmented, things could slip through the cracks.  This could include compliance, the candidate experience, safe engagement and disengagement, and more.  Your healthcare MSP partner understands that standardization of these systems and processes can provide an important element of risk mitigation for health systems. These operational improvements and efficiencies drive innovation, cost containment, and provide a structure to safely manage growing contingent labor programs.
  • Improve on-boarding and off-boarding. It’s critical that any contingent worker starting a new engagement is trained in the unique systems, processes, and safety procedures at that site. With the help of your healthcare MSP partner, all candidates receive proactive on-boarding documentation to train them and familiarize them with the health system’s systems and processes.  When contingent workers complete their engagement, your healthcare MSP partner is also able to mitigate risk by safely off-boarding them, recovering any equipment issued, badges, and more.  This mitigates the risk associated with a contingent worker gaining access to the site and using the organization’s resources after their engagement has ended.

As health systems’ contingent labor programs grow in size and complexity, undue risk could also potentially grow.  In order to remove risk from the balance sheet, it’s important to consider partnering with a healthcare MSP for your contingent workforce management.  Contact leading healthcare MSP, RightSourcing, and take a free workforce analysis to find out how your health system can mitigate risk.

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