How Can an MSP Improve Healthcare SOW Success?

Health systems are under immense pressure right now to enhance their quality of value- based care and to conform to new technology implementation guidelines.  In many cases, health systems have responded by increasing their use of Statement of Work (SOW) workers to get the job done.  However, many of these healthcare SOW workers are still being recruited and managed outside of the MSP.  When healthcare SOW workers remain outside of the purview of the MSP, health systems risk a variety of consequences such as lack of visibility into project milestones and deliverables, rogue spend, higher bill rates, and lack of conformity with established healthcare compliance guidelines.  Shouldn’t a successful SOW program also be managed within the MSP program?

The Path to Success: Including Healthcare SOW in the MSP

When cost containment, performance, and compliance are system goals, it seems only natural a health system would want to include its healthcare SOW workers in the MSP program.  MSP program delivery teams are experts in the management of contingent workers and can similarly deliver superior results with healthcare SOW workers. Find out what benefits your health system can gain by including your SOW programs in the MSP:

  • Healthcare compliance. In many health systems, healthcare SOW workers are obtained outside of the MSP program.  These relationships are often managed by a department manager, such as IT.  Yet, department managers aren’t experts in healthcare compliance  They may be unaware that a consultant proclaiming to be an independent contractor doesn’t meet the guidelines established by federal regulations.  However, the program management experts in an MSP are aware of these regulations and can properly vet self-proclaimed 1099 independent contractors for conformity with established compliance guidelines.
  • Better access to top suppliers. While many employees at a health system may have established relationships with suppliers, only the MSP maintains relationships with thousands of suppliers nationally.  By including healthcare SOW programs in the MSP, the health system increases their access to thousands of suppliers, ensuring they obtain the best candidates to enhance program success.  Not all MSP’s are created equal, though.  Only a vendor neutral MSP can guarantee these relationships as they do not prioritize any one supplier over another.  A primary MSP, in contrast, would extend preferential treatment to their own recruiting division to fill positions.  Not so with a vendor neutral MSP- they offer an even playing field for all suppliers to compete for placements.
  • Lower billing rates. Bill rates can skyrocket when department managers manage healthcare SOW programs.  Suppliers and consultants alike are able to bill higher because a department manager is often unaware of the market rate for specialized talent.  By routing the healthcare SOW program through the MSP, the health system gains access to advanced strategic analytics and market rate intelligence that can significantly lower bill rates for healthcare SOW workers. Additionally, their bulk use of these suppliers across multiple health system clients gives the MSP better negotiating room to obtain placements at better rates.
  • Efficient processes. Health systems are increasingly decentralized in their hiring and management of healthcare contingent workers.  The same is often true of healthcare SOW workers.  The process of filling an open requisition can be quite fragmented and redundant, wasting department managers’ time in the process.  The MSP can provide one central point of contact to initiate a requisition, communicate with both suppliers and the hiring manager, obtain compliance documentation or business validation, and on-board and train.   Making this process more efficient can save health systems significantly, reducing time spent on the process and more.  Our clients have realized an average benefit of $81 per healthcare SOW worker in process savings
  • Risk mitigation. Health systems often have very specific contract language designed to protect them from undue risk.  Unfortunately, when healthcare SOW programs operate independently, this same risk mitigation may not be in place.  Contract leakage can occur, mission creep, and terms may not flow down from the health system’s master contract language in an appropriate manner.  This is why it’s critical that the MSP manages healthcare SOW programs.  The MSP will negotiate contract language that mirrors the health system’s original contract terms, improving risk mitigation efforts and guarding against contract leakage or mission creep.

As health systems continue to use healthcare SOW programs, more are finding a positive benefit to the MSP managing these programs.  RightSourcing is an experienced vendor neutral MSP skilled in healthcare SOW and contingent workforce management.  To find out what benefits your health system can gain, contact RightSourcing today for a free workforce analysis.

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