When health systems grow in size and complexity, their supply chain can suffer from a lack of visibility into all areas of spend and utilization of resources. Often, growing contingent labor programs further complicate this lack of visibility with decentralized hiring and fragmented processes. However, a healthcare MSP can fill in the missing pieces and improve supply chain management overall.
Your Health System Supply Chain Needs a Healthcare MSP
A well functioning health system supply chain has visibility in all areas of resource utilization, labor, and spend. Yet as health systems grow, their ability to maintain visibility and adequately manage their supply chain does not always grow with them. This is why a healthcare MSP is so important as a partner. An MSP partner can work in tandem with the Supply Chain department and enhance health systems’ ability to manage its resources to ultimately provide better patient care. Consider the following ways in which a healthcare MSP can improve your health system’s supply chain management:
- A healthcare MSP can enhance contingent workforce management. As contingent labor programs grow, many health systems’ supplier relationships are tied to hiring managers, not the Supply Chain or HR departments. This can lead to uncertainty into billing rates, budget alignment, and use of resources. When your MSP partner manages this process, health systems are able to improve contingent worker hiring efficiencies and visibility. Visibility and efficient processes save the health system money and allow for better management of their contingent labor program. Using their advanced market rate intelligence, a healthcare MSP can reduce bill rates and enhance competition among suppliers. Particularly when the healthcare MSP is vendor neutral, health systems gain access to thousands of suppliers, not just a handful. And each supplier is competing to send their best candidates at the best rates. This greatly benefits the health system’s supply chain management.
- A healthcare MSP can provide budget alignment. A healthcare MSP can provide budget alignment and cost tracking. When the health system includes all areas of their contingent labor program in the managed service program, cost tracking and budget alignment become easy. A healthcare MSP can provide detailed reporting to Supply Chain, enhancing the department’s ability to oversee how resources are utilized. Using a VMS solution, costs can be identified, tracked, and rolled up to the budget to ensure alignment. The onsite program management team can then meet with stakeholders to further improve this vital piece of supply chain management. Payments are more easily tracked and audited against the budget and goals. All spend can be accounted for by using a healthcare MSP partner.
- A healthcare MSP can enhance contract compliance. When hiring managers manage the supplier relationship, it can complicate contract compliance and risk mitigation efforts. By partnering with a healthcare MSP, health systems can ensure that their primary contract terms are also in effect for each supplier participating in the program. This can reduce risk and enhance a health system’s ability to effectively manage their supply chain. Your MSP partner can also engage in contract negotiation with suppliers and vendors on behalf of the health system, ensuring strict compliance with preferred contract terms.
Health systems’ growing complexities challenge existing supply chain management, particularly when their contingent labor programs grow larger. To keep pace with this growth, try a healthcare MSP. Take RightSourcing’s free workforce analysis and find out how your supply chain management can improve.