Healthcare Workforce Logistics Insights - Blog

Locum tenens: are you paying too much?

Written by Trevor Strauss, FACHE | June 29, 2021

Are you paying market rates for Locums? Or are you overpaying? If you are negotiating rates with agencies individually and without the benefit of a competitive process you are most likely overpaying. The reality is that most health systems do not do a great job ensuring that they are competitive in the marketplace and not being overcharged for fees and conversions.

A Closer Look: Benchmarking Locum Labor Costs

Did you know that the top 5 Locums firms account for 72% share of the total market?

Managing an RFP process is time-consuming and requires buyers to allocate internal resources and time. Because most organizations spend less on locums staff than other types of staffing it usually is not worth the effort for an organization to conduct an RFP of its own.

The locums staffing market is the least penetrated by MSP and VMS solutions. Approximately 10% of healthcare employers use an MSP or VMS to manage locums versus >70% of nursing. This means that most organizations must negotiate individual contracts with different locums agencies, resulting in non-standard pricing structures, contract rates, and other contractual terms and conditions.

HWL has developed a proprietary process that helps clients to better understand the local locums market with insights that allow most organizations to achieve cost savings. In addition, HWL’s consultative approach and locums-focused technology platform result in savings and operational efficiencies.

How do we do it?

Learn more by downloading a copy of: A Closer Look: Locums Labor Costs

Healthcare Workforce Logistics’ Vendor Management System (VMS) engages all client stakeholders in a careful process:

  • Ensure competitive market rates
  • Standardize contracts and fees
  • Automate processes
  • Gain supplier commitment

For more information or to schedule a no-obligation rate analysis and cost savings estimate for your health system email us or give us a call today.

Email: info@hwlmsp.com

Phone: 833-HWL-INFO (495-4636)