Healthcare systems today find themselves in a unique position- demand for healthcare workers is rising, yet many budgets are tied to maintaining more stringent compliance. How does a healthcare system reduce healthcare hiring costs and avoid risk? The answer is to use a managed service provider.
Reduce Healthcare Hiring Costs with a Managed Service Provider
Managed service providers are the perfect solution for healthcare systems seeking to reduce healthcare hiring costs and to maintain strict compliance with a myriad of federal and state regulations. On their own, many healthcare systems are decentralized, unaware of their healthcare hiring costs, and areas of potential risk. Find out how a managed service provider can reduce healthcare hiring costs:
- Building candidate pools. In the healthcare industry, everyone knows someone or has worked with someone at another healthcare system that they can recommend. By taking the recommendations of existing employees, healthcare systems can reduce healthcare hiring costs with a pool of top candidates to payroll. This allows the healthcare system to avoid paying costly markups for contingent workers. A managed service provider can payroll the contingent workers at a lower cost, reducing healthcare spend. One of RightSourcing’s clients was able to save over $400,000 by building strong candidate pools and payrolling these contingent workers. The average client saves between 18-20% by building such a candidate pool.
- Providing market rate intelligence. Many healthcare systems are concerned with obtaining the best talent, but they could be significantly overpaying to obtain them. Using a managed service provider, healthcare systems gain access to advanced market rate intelligence. RightSourcing works with over 1,000 healthcare suppliers across the United States and keeps close tabs on what the market actually looks like by position title and region. Using advanced market rate intelligence, many healthcare systems are able to reduce their healthcare hiring costs by over 20%. This allows healthcare systems to hire the very best candidates without overextending their budgets.
- Negotiated rates. A strong tool to reduce healthcare hiring costs is negotiated rates with suppliers. This can include negotiating not to exceed rates, volume discounts, and converting existing contingent workers to full time staff. Using a combination of these methods, RightSourcing has been able to reduce healthcare hiring costs by over $4 million for one client alone. That’s over $4 million that can be reinvested in patient care.
- Increased hiring efficiencies. Decentralized staffing can lead to runaway costs and compliance risks. By centralizing this function, a managed service provider can reduce healthcare hiring costs significantly and ensure strict compliance with federal and state regulations. An efficient hiring process can guard against the need for crisis hiring and crisis rates. Healthcare hiring costs can skyrocket if time to fill is excessive. Centralization and streamlining operations gives managers more time back in their day, reduces time to fill rates, reduces runaway healthcare hiring costs, and assists healthcare systems in preventing potentially costly fines and lawsuits.
- Vendor neutrality. A vendor neutral managed service provider can better help healthcare systems reduce healthcare hiring costs. This is because all vendors are placed on a level playing field, increasing competition for placements. Without preferential treatment to any one supplier, the best candidates are placed at the best rates. Vendor neutrality also ensures that a mixture of suppliers send their very best candidates. Where a primary supplier seeks to be the managed service provider, many suppliers are afraid to send their top candidates for fear of losing them to the competition. Only vendor neutrality can achieve the reduction in healthcare hiring costs while ensuring healthcare systems attract the very best candidates.
The increased demand for healthcare hiring has led to increased healthcare hiring costs and potential compliance risks. Using a managed service provider, healthcare systems can significantly reduce healthcare spend, enhance compliance, and increase their ability to deliver superior patient care. Find out how RightSourcing can reduce your healthcare hiring costs and get a free workforce analysis today.