I recently shared insights with HFMA’s Healthcare Cost Containment about the cost-saving benefits and increased efficiencies associated with a vendor-neutral Managed Service Provider (MSP); specifically in health systems.
A lack of efficiency is often to blame for runaway labor costs. But efficiency is not solely about encouraging workers to perform at higher levels. Efficiency also includes labor acquisition, retention, and management as well as contract performance and compliance. Without a focus on all of these areas, healthcare systems are missing an opportunity to realize significant cost savings and program efficiencies.
Health systems seeking to optimize the value of their labor frequently rely on vendor-neutral MSPs to efficiently source quality contingent labor and implement best practices. Specifically, a vendor-neutral MSP can guide a customer with the important tasks of supplier management, contract negotiation, credentialing, risk mitigation, and training contingent workers.How it that possible? Don’t worry, we have proof.
Recently, a California-based healthcare network saved more than $15 million during an initial three-year period using a MSP. These savings were achieved by finding and eliminating large discrepancies in:
- Staffing supplier billing
- Implementing analytical forecasting
- Enforcing supplier performance contracts
- Using MSP aggregated volume to negotiate favorable rates
- Ensuring employee qualification compliance
Working with the MSP, the health system realized improved supplier selection, more favorable rates, and improved the quality of the staff provided. These changes were directly responsible for improved budget forecasting and accuracy in future staffing projections. The health system also obtained the benefits of a centralized third-party oversight team. The MSP used analytics and vendor management system technology to monitor supplier performance, leverage expertise to manage their overall spend, obtain more favorable rates, and streamline the billing process by providing one single invoice with the appropriate cost centers charged for the work.
Read the full article for ways a vendor-neutral MSP can optimize every dollar spent while procuring the best talent for your contingent workforce.