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.
Updated October 2023
What Is an MSP in Staffing?
Generally speaking, a Managed Service Provider (MSP) is an agency that specializes in outsourcing certain operations in order to cut costs and improve performance for organizations. MSPs act as an alternative to the on-demand outsourcing and the break/fix outsourcing models. While on-demand and break/fix models bill the customer when work is done, MSP takes a more holistic approach and works under a subscription model.
The introduction of the COVID-19 vaccine brought a sigh of relief to most Americans, signaling a gradual shift to normalcy. This return to normal, however, will not come easy. The vaccine alone can not solve the problem—it will take widespread vaccinations to put an end to the global pandemic. Since the onset of the pandemic, Healthcare Workforce Logistics (HWL) has doubled down on what it does best — mobilizing healthcare professionals where they’re needed most and providing creative solutions like mobile vaccination sites to the nation’s most difficult to reach communities.
Healthcare Workforce Logistics (HWL) partnered with Georgia Emergency Management and Homeland Security Agency (GEMA/HS) to provide a full-service Vaccination Staffing Program with a scalable platform designed for speed to delivery.
In times of crisis, it is vital for healthcare organizations to lean on the right outside partners to supplement their own resources. The fall of 2020 was a difficult one, ushering in yet another surge of COVID-19 patients to hospitals and clinics across the nation and stretching critical healthcare staff—Banner Health was no exception. In mid-November, Banner’s Managed Services Provider (MSP), Healthcare Workforce Logistics (HWL), put out the request for physicians through its Vendor Management System (VMS). David Gibbons, a healthcare consultant at Floyd Lee Locums, saw the openings and eagerly performed the search. As a newly contracted vendor for Banner, Floyd Lee Locums was tasked with presenting high-performing candidates quickly while adhering to Banner’s internal hiring process.
The pandemic has dramatically altered the relationship between price and demand related to healthcare staffing. Concurrently, health systems are facing mounting financial pressures and limited resources, preventing the ability to conduct the necessary and objective market rate analysis. This is where HWL excels, providing a vendor-neutral model that achieves competitive sourcing and rate negotiation while also offering full transparency into contingent labor costs. As mass vaccination sites continue to roll out nationwide, now is the time to explore vendor-neutral managed service providers (MSPs) and move away from supplier-driven MSPs that prioritize their own margin preservation.
The long-anticipated coronavirus (COVID-19) vaccine has finally arrived but with staffing shortages across the U.S. and the rollout of mass vaccination sites—vaccination staffing professionals are sorely needed. It is no secret that proper vaccine administration is critical to ensure the vaccine rollout is both safe and effective. In response, Healthcare Workforce Logistics (HWL) has developed a vendor-neutral staffing program designed to meet the need for staff that provides vaccination services to employees and the general public. HWL can connect healthcare delivery organizations to their 100+ agency consortium within 24 hours—a critical component in the ongoing fight against COVID-19.
COVID-19 has accelerated the digitalization of the hiring process. With increased emphasis on removing friction in regard to talent acquisition, streamlining the onboarding process to keep costs down, fill rates up, and the quality of staff consistent—this year technology and automation are even more important.
While 2020 has been a difficult year, HWL has had the privilege of joining the call for nationwide coronavirus (COVID-19) assistance—deploying the COVID-19 Surge Staffing Program to connect healthcare organizations with contingent workers rapidly and seamlessly. We have witnessed locums, nursing, and allied health professionals around the U.S. band together to help others in hard-hit areas respond to this pandemic, advocating for people they have never met and providing quality compassionate care when needed most.
Healthcare systems of all sizes are acknowledging the benefits of working with contingent labor; however, many organizations are finding it difficult to manage agency spend, streamline the recruitment process and possess the strategic foresight necessary for successful future staff planning. Contracting with workforce solutions providers to assist with managing contingent labor can save hospitals and practices money while also allowing the organization to focus on what they do best—caring for patients.
When faced with a temporary vacancy the busy Critical Care unit at Lahey Hospital and Medical Center, does what every other healthcare facility would do, contacts a rapid response staffing agency to fill the vacancy quickly. Desperate for a qualified candidate, the Critical Care Nurse Manager complies with the terms of the agency’s contract and agrees to the agency rate requested for the expedited candidate.
Vendor Management Systems (VMS) streamline and standardize the management of contingent workers across the healthcare organization to reduce costs and increase time saved. Whether it’s Local or Travel, Contract or Per Diem, Clinical or Non-Clinical, a robust VMS will deliver heightened visibility, efficiency, and compliance into your operations. Learn how Lahey Hospital and Medical Center leveraged HWL VMS technology to consolidate contract hiring and monitor contingent workforce performance across the organization.
In April, a small post-acute facility in a large Southeast city began to feel the harsh impact of COVID-19. As patient health deteriorated the Department of Health, assisted by the National Guard, tested all 204 residents and staff—104 residents and 21 staff members tested positive for COVID-19. At this point, one resident and one staff member had passed away as a result of the virus.
Determining market equilibrium pricing can be complex, but it doesn't have to be. Healthcare Workforce Logistics (HWL) is uniquely positioned to act as an honest broker for our clients. Unlike an agency-managed MSP program, we offer the ability to have one set rate with all vendors, tiered rate structures, or individual rates with each agency. We also monitor and assess agencies’ performance on an on-going basis and continuously monitor market pricing to achieve cost reductions on locums, nursing, and allied health professionals.
Nursing and allied health professional wages vary not only among states and cities but also among clinical specialties, certifications, roles, and practice environments. Coupled with the laborious task of managing multiple contract labor agencies, it can be a frustrating recruitment process. The crux of the matter is how do you acquire top temporary talent seamlessly and without overpaying? And how do you uncover if your organization is overpaying in the first place?
Since the onset of the COVID-19 pandemic in the U.S., Healthcare Workforce Logistics (HWL) has doubled down on what it does best - mobilizing healthcare professionals where they’re needed most, at competitive rates - in the nation’s hot spots, including a pivotal role in our home state of Georgia.
Access to the right data at the right time is essential to containing agency spend and meeting increased healthcare demands. Accurate or ‘clean’ data ensures health systems don’t fly blind—providing leverage for vendor negotiations, rapid staffing fulfillment, and additional cost management activities. For every expense category in the hospital, you rely on data. Data drives most decisions about spending and yet when it comes to contingent labor costs, often organizations don’t have a clear picture. Wouldn’t you like the same level of control and insight into agency spending that you have with other operational expenditures?
Locum tenens, nursing, and allied health professionals are essential components in the battle against coronavirus (COVID-19) and all of its variants, including the highly contagious Delta variant that has caused recent spikes in cases. Healthcare Workforce Logistics (HWL) is offering healthcare delivery organizations a rapid response staffing program designed to meet urgent staffing needs driven by increased demand for healthcare professionals and shortages of core staff due to the COVID-19 pandemic.
Even as health systems are breathing a sigh of relief in the home stretch of the first wave of COVID-19 patients, they are facing staggering financial disruptions of key service lines. Some health systems continue to have surge staff needs and others are furloughing employees. In either case, all organizations should take this opportunity to thoroughly assess all aspects of staffing needs and processes and evaluate how best to progress forward.
Locum tenens healthcare providers can be lifesavers for organizations who need additional providers, even though they come with a higher price tag than fully employed providers. Given an aging population and an aging physician workforce, the need for Locums is expected to continue to climb.