Managing contingent staffing can get complicated quickly. Open requisitions may live in one system, credential documents in another, and invoices somewhere else entirely. When multiple staffing vendors are involved, keeping everything organized becomes even harder.
Within this guide, we’ll walk through what to look for when choosing a healthcare VMS and how to compare your options. You’ll also learn how a VMS differs from an MSP, what red flags to watch for, and what to consider when choosing the right partner.
Table of contents
- Step one: Identify your workforce challenges
- Step two: Consider whether you need a VMS, MSP, or both
- Step three: Evaluate the user experience
- Step four: Understand the implementation process
- Step five: Compare customer support and account management
- Step six: Ask about security and compliance
- Red flags to watch for
- Choosing the right healthcare VMS partner with Favorite
- Healthcare VMS FAQs
Step 1: identify your workforce challenges
Before comparing healthcare vendor management systems, look at where your current staffing process creates extra work or delays. The best healthcare VMS should address the problems your organization is already facing rather than introducing another disconnected system.
Common challenges we find that organizations face prior to choosing our healthcare VMS are:
- Inconsistent staffing request processes across departments or locations
- Limited visibility into labor costs and agency usage
- Too much time spent communicating with multiple vendors
- Credentialing delays that affect start dates
- Incomplete or unreliable workforce data for leadership
Once you understand your biggest challenges, you can identify which capabilities will matter most when choosing your healthcare VMS. For example, if you're experiencing credentialing delays, you may want to focus on stronger compliance tracking. Whereas if you're managing several locations, you may place greater value on standardized workflows and centralized reporting.
Understanding your workforce challenges also gives you a clearer way to compare providers. Instead of choosing a healthcare workforce management system based on the longest feature list, you can focus on how well each option supports your daily operations and long-term workforce goals.
Step 2: consider whether you need a VMS, MSP, or both
A vendor management system and a managed service provider play different roles in contingent workforce management. A healthcare VMS is the technology that keeps staffing activity organized in one place. Teams can use it to manage requisitions and candidate submissions, while also keeping track of credentials, timekeeping, and other key details.
An MSP is the partner that helps run the program. They may manage staffing vendors, support compliance, and step in when issues come up. Some organizations only need the technology. Others want more hands-on support with the day-to-day work and overall workforce strategy.
A VMS may be the right fit if you:
- Have an internal team that can manage staffing vendors
- Need one system for requisitions and candidate submissions
- Want more consistent workflows across locations
- Need clearer reporting on labor costs and agency usage
- Want to replace disconnected agency portals and spreadsheets
An MSP may be the right fit if you:
- Need help managing multiple staffing vendors
- Want support with compliance and program administration
- Have limited internal resources to oversee contingent staffing
- Need help improving vendor performance
- Want guidance on workforce strategy and cost management
Using a VMS and MSP together
A combined VMS and MSP model gives healthcare organizations both the technology and hands-on support to manage a complex contingent workforce. The VMS keeps staffing activity in one place, while the MSP helps manage the program and keep it aligned with workforce goals.
Step 3: evaluate the user experience
A healthcare VMS can offer plenty of features, but that doesn’t help much if the system is hard to use. Managers and workforce teams should be able to complete everyday tasks without extra steps or a lot of training. When comparing platforms, look at how easy it is to submit staffing requests and review candidates. It should also be simple to check assignment details and find the information needed to make staffing decisions.
Reporting matters too. Teams shouldn’t have to dig through complicated dashboards or reports to find the data they need.
Useful reporting may include:
- Fill rates and time to fill
- Overtime and agency usage
- Vendor performance
- Compliance status
- Workforce trends by facility or department
It’s also worth asking how much training is required and what the experience looks like for different users. A platform that works well for a system administrator may still be frustrating for a department manager who only logs in occasionally. During a demo, focus on the tasks your teams will perform most often. A healthcare staffing VMS should make those workflows simpler, not just move them into a new system.
Step 4: understand the implementation process
The right healthcare VMS needs the right rollout. Before choosing a provider, get a clear picture of what implementation will actually require from your team. Ask how setup will work and whether the system needs to connect with any of your existing technology. It’s also worth understanding how data will be transferred and what training users will receive before launch.
Responsibilities should be clear from the start. Your team should know what the provider will handle and where internal support will still be needed. For larger organizations, a phased rollout may also make sense. Starting with selected facilities or departments can give teams time to adjust before the system is introduced more widely. The goal is to avoid surprises. A good provider should be able to walk you through the process and explain what implementation will look like from start to finish.
Favorite is on the mic!
CEO Amanda Hoffman joined the Inspired Stories Podcast to share her leadership journey and how Favorite is helping healthcare organizations build more sustainable workforce strategies. Read the highlights and listen to the full conversation.
Step 5: compare customer support and account management
Support shouldn’t end once the healthcare staffing VMS goes live. Your team will likely need help as questions come up or workforce needs change. When comparing providers, consider:
- Whether support is available by phone or mainly through tickets
- Whether you’ll have a dedicated point of contact
- Who handles technical issues
- How quickly problems are addressed
- Whether ongoing optimization support is included
Account management matters too. A strong provider should understand how your organization uses the platform and help you improve the program over time. Before signing a contract, ask what support will look like after implementation. Knowing who to contact and how issues are handled can be just as important as the technology itself.
Step 6: ask about security and compliance
A healthcare VMS may hold sensitive workforce and organizational data, so security should be part of the evaluation process from the beginning. Ask potential providers how they protect data and control access to the platform. You should also understand what happens if a security issue occurs and how activity within the system is tracked. Questions to consider include:
- How is sensitive data protected?
- What security certifications or controls are in place?
- How are user permissions managed?
- Does the system maintain an audit trail?
- How does the provider respond to security incidents?
The provider should be able to answer these questions clearly and explain how its security approach fits healthcare workforce operations.
Red flags to watch for
Not every healthcare VMS will be the right fit. Some warning signs may point to problems that are harder to fix once the system is already in place.
Watch for:
- Limited healthcare staffing experience
- Unclear implementation responsibilities
- Reporting that can’t be customized
- Unexpected fees
- Weak integration capabilities
- Limited post-launch support
- A platform that requires excessive manual work
Pay attention to how providers respond when you ask about these areas. If answers are vague or responsibilities aren’t clearly defined, that may be a sign to look more closely before moving forward.
Choosing the right healthcare VMS partner with Favorite
The right healthcare VMS partner should do more than provide software. You need a platform that fits how your organization works and a team that can support you after launch. Favorite combines healthcare-specific technology with ongoing workforce support. Our VMS gives your team one place to manage staffing vendors and contingent labor, while also bringing internal resources and compliance activity into the same platform.
With Favorite, healthcare organizations can:
- Track credentials and licenses in real time
- View staffing spend and vendor performance across the organization
- Manage scheduling, credentialing, and reporting through one secure partner portal
- Simplify invoicing with one consolidated invoice while Favorite manages vendor payments
With 24/7 support, you have help when staffing needs arise, not just during business hours. The platform can be configured around your organization’s goals and workflows, while Favorite’s team provides ongoing guidance to help improve performance and strengthen your workforce strategy. Favorite’s VMS also integrates with commonly used healthcare systems for payroll, credentialing, and time and attendance, creating a more connected and efficient workforce management experience.
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