In 2016, the Bureau of Labor Statistics reported that healthcare employment grew by 3.6%, driving much of the growth of new jobs added to the economy. Within healthcare, this also coincided with a significant growth in contingent workforce programs. Unable to acquire enough qualified candidates to keep pace with rising demand, many health systems sought to fill in the gaps and audition potential candidates by increasing their use of contingent workers. Yet as contingent workforce programs grew, so too did their risk across the supply chain. Contingent workforce management therefore demanded more attention to risk management. Is your health system aware of the ways in which to minimize contingent workforce management risk across the supply chain?
Turn to A Managed Service Provider Partner to Minimize Contingent Workforce Management Risk
As contingent workforce programs grow in scope and size, contingent workforce management has become more complex. The risk associated with mismanagement or fragmented contingent workforce management can significantly impact health systems, exposing them to risk of costly audits, penalties, fines, and even lawsuits. To minimize this risk across the supply chain, consider partnering with a managed service provider to improve contingent workforce management. Consider the following ways in which this can significantly reduce risk:
- Increase visibility and transparency. When a health system partners with a managed service provider, they gain visibility into areas of contingent workforce spend and resource utilization that may not have previously been known. When hiring managers are responsible for contingent workforce management, stakeholders may be unaware of the additional contingent workers who are onsite, costs, or budget utilization. This can represent risk that may be misaligned with overall health system goals. By partnering with a managed service provider, health systems are able to see clear budget breakdowns in the VMS technology, and gain regular headcount reporting. This visibility and transparency significantly enhances contingent workforce management and reduces risk.
- Enhance compliance. Health systems are subject to a myriad of state, federal, and independent organizations’ regulations. Healthcare compliance should therefore be central to superior contingent workforce management. Poor and incomplete compliance documentation could pose a significant risk to health systems seeking to comply with audits and certification requirements. By partnering with a managed service provider, health systems can rest easy that every contingent worker is certified and able to work onsite. Their teams of experts work with suppliers to ensure candidates have the necessary compliance documents and audit each credential and certification prior to engagement. Should a regulatory body audit compliance documentation, managers can easily access a full compliance portfolio on each contingent worker. This can significantly reduce the risk of fines and penalties associated with noncompliance.
- Audit and track supplier performance. Often, when hiring managers are responsible for contingent workforce management, supplier performance remains a mystery. A managed service provider can provide keen insights and strategic analytics into areas of performance, compliance, and adherence to market rates. This can significantly inform stakeholders, offering opportunities to reduce egregious spend, obtain new suppliers, and enhance compliance.
- Minimize non-employee misclassification. In 2017, non-employee misclassification will continue to be a huge area of risk for health systems. To date, the U.S. Department of Labor has joined with the IRS and 35 states to audit and assess damages to organizations that have made misclassification errors. In partnership with a managed service provider, health systems can breathe easier. This is because as a part of their contingent workforce management, a managed service provider partner such as RightSourcing can provide business validation services to mitigate risk of non-employee misclassification.
Health systems seeking to improve their contingent workforce management and reduce risk across the supply chain are encouraged to partner with a managed service provider. Contact the leading healthcare-focused managed service provider, RightSourcing, for a free workforce analysis to find out what benefits your health system can gain.