When it comes to managing a health system’s contingent workforce, many health systems are aware that partnering with a managed service provider (MSP,) is a smart choice. After all, MSP’s can provide a wealth of benefits- contingent workforce management, enhanced efficiencies, transparency in the hiring process, risk mitigation, and more. But when it comes to partnering with an MSP, it can be a confusing process. With so many options in the marketplace, it can be difficult to make a decision. Do you go with a primary MSP, a technology only MSP, or do you opt for a vendor neutral MSP? If you’re concerned with reducing hiring costs, enhancing overall efficiency, and mitigating risk, a vendor neutral MSP is the smartest choice you can make.
Why A Vendor Neutral MSP is the Safest Choice
Not all MSP’s were created equal. Unfortunately, many make claims that they can provide the benefits that a vendor neutral MSP can provide, but this just isn’t the case. There are often competing interests, support issues, and critical compliance issues at stake. Consider the following reasons why a vendor neutral MSP is the safest choice for managing your contingent workforce:
- A vendor neutral MSP can provide a level playing field. When it comes to sourcing and hiring the best talent, you want a vendor neutral MSP. A primary MSP such as one run by a large staffing firm, sources as much as 80% of a health system’s talent from their own staffing company. This means that your health system may lose access to top talent represented by another supplier. It also means you may be beholden to higher rates for filling positions. An MSP is ideally an outside entity managing vendors and suppliers to ensure program efficiency and a reduction of costs. A vendor neutral MSP provides a level playing field, making it a competitive landscape where suppliers compete to provide the best candidates at the best rates.
- A vendor neutral MSP lets you keep working with the vendors you trust. Changing processes can be difficult for health systems. Using familiar vendors, whether technology providers or suppliers, can be a great comfort during times of transition. Consider how your managers may feel about having to work with new people after potentially working with the same vendors for decades. Only a vendor neutral MSP lets you keep working with the same vendors you’ve always worked with. They do so by partnering with these vendors to ensure a smooth transition to better ways of doing business. Employees are happy that things haven’t changed all that much and processes become more efficient, compliance is enhanced, and rates lower due to an outside entity’s involvement. A vendor neutral MSP seeks to leverage their experience with multiple health systems to lower vendor rates, enhance suppliers’ compliant screening and increase program efficiency.
- Risk is lowered by using a vendor neutral MSP. When a health system uses a primary MSP, they often rely upon that provider to source the bulk of their contingent workforce. If their supplier division doesn’t have the candidates to fill a position, it can go unfilled for long periods of time. Using a vendor neutral MSP, the risk of unfilled positions is lowered significantly. This is because a vendor neutral MSP works with over a thousand different suppliers, any of whom may represent the right candidate for the position. Further, many primary MSP’s can guarantee compliant documentations and credentials of their own people, but they cannot guarantee the same for any supplier they seek to use in their program. Often, compliance is shaky at best and standards are not upheld that guarantee everyone placed should be on site. Using a vendor neutral MSP, all suppliers and vendors are held to the same standard. Compliance takes precedence over speed and enhances the quality of individuals working on site. Vendors receive a strong message that compliant practices are key to a successful placement and compliant practices are completed in a timelier manner as a prerequisite to placement.
- There is better alignment with client goals. Misalignment can be a danger to using an MSP that is not vendor neutral. A technology only MSP does not have a system in place to address client goals for diversity, reduction of spend, or employee conversions. A primary MSP remains more invested in placing their own staff in order to keep the pricy contingent workers in the pipeline. Only a vendor neutral MSP can guarantee alignment with client goals. The competition created by using a mixture of suppliers ensures better market rates and the enhanced support of onsite teams ensures alignment with client goals for diversity, compliance, and cost reduction methods such as employee conversions. A vendor neutral MSP does not have any vested interest in placing candidates at higher rates, advising against employee conversions, or reducing the amount of positions submitted in a VMS solution.
When considering partnering with an MSP, it’s important to keep in mind the benefits vendor neutrality can bring to your health system. Contact RightSourcing today for a free workforce analysis and find out how much money you can save with a vendor neutral MSP.