Updated October 2023
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.
When it comes to staffing, MSPs are effective at managing a company's staffing and human resources needs. The workforce, both temporary and full time, is managed by the MSP’s team of experienced professionals, according to the client’s requirements.
MSPs work as a complete solution for your HR and staffing needs, including procurement of the workforce and management of staffing, invoicing and payments. Coupled with a vendor management system (VMS), the MSP gives a complete picture of each contingent worker in the organization.
MSP services are very diverse and often include information services, business to business integration, supply chain managed services, logistics, transportation, marketing, media, energy, communication or environmental services. MSPs are prevalent in human resources and staffing functions, particularly in the healthcare sector.
In a managed service model, the client retains direct oversight of the system being managed (staffing), while the MSP provides the managed service and manages the quality, availability and cost criteria. The service criteria are detailed in a service-level agreement that specifies the performance metrics of the commercial relationship.
A quality MSP also guides clients to compliance with all government requirements, labor regulations, and credentialing through a consistent, rigorously designed process. MSPs are also experts in providing guidance on hiring and management of the workforce with effective talent analytics tools.
Most MSPs are geared toward medium-to-large organizations which can meet a volume threshold necessary for the program to be reliable and self-sufficient. MSPs for staffing and human resources typically require a minimum budget. That being said, MSPs are not only adept at maintaining legal compliance and improving various functions, they also stay on top of industry trends, market movements, emerging technology, and more, so the organization can make informed, strategic decisions. This not only helps the business stay competitive, but fosters growth and future success.
Here are some questions you should ask before deciding on an MSP for your staffing needs:
If the answer is NO to any of these questions listed above, your organization should consider an MSP for staffing with consideration of your organization's goals, special requirements and, most importantly, whether the program can help you achieve your objectives on budget within the desired time frame.
Companies and organizations that use a flexible approach to talent spend are often overwhelmed with the details of workforce management. It's not uncommon for hiring managers to outsource their talent acquisition, leaving human resources departments unaware of who joins and who leaves the organization. Moreover, human resources departments may be overwhelmed with management issues, such as compliance with labor and legal regulations and industry-specific requirements.
This disjointed approach can lead to increased costs, poor performance, further legal issues and penalties. Risks include physical safety concerns, cyber security breaches, regulatory adherence issues, high labor costs, and fraud, among others.
Here are some of the benefits of MSP staffing implementation:
There are two main pricing models for MSP implementation — client-funded and supplier-funded:
Additional pricing models include gain-share and cost-plus. In gain-share models, an MSP shares in the demonstrable return-on-investment from its good performance. In cost-plus models, the costs are transparent to clients, helping them to manage risks.
With staffing being the biggest cost in healthcare organizations, especially due to industry over-reliance on contingent/travel staff, it's critical to both find the best workers in the industry and to manage them properly. A good MSP staffing program for healthcare organizations reduces the cumbersome and expensive issues that can happen during talent acquisition, hiring, invoicing and talent management. By engaging with an effective MSP, your company will learn how to spend money the smart way: streamlining and simplifying the staffing process, increasing efficiency and productivity, while adhering to regulations.
Read: Top Issues Confronting Hospitals in 2024
So, how do MSPs overcome staffing challenges in the healthcare sector? Simply put, MSPs improve efficiency on multiple levels through a holistic and expertly managed approach.
HWL's broad service offerings include MSP, VMS, Locums management, internal agency creation, advisory services, and much more. Our company was designed from the ground up to help healthcare organizations contain costs, create long-term sustainability, and provide higher quality of care.
If you're suffering from excessive staffing costs as many are in the healthcare space, give us a call to book a demo and find out how our customized solutions can help you attain your goals.