You might think a managed service provider (MSP) and a vendor management system (VMS) are the same thing, however, this is not the case. This blog will go in depth about what an MSP and VMS are, as well as the benefits of using them and the key differences between the two.
What is an MSP?
A managed service provider (MSP) is a cost-effective solution that is especially useful in the healthcare staffing industry when it comes to managing contingent labor. According to an article titled, “What Is a Managed Service Provider in the Staffing Industry”, “A managed service provider (MSP) is a third-party business that manages your temporary worker recruitment and manages your contingent talent. Temporary staffing, like locum tenens providers, offers organizations the flexibility to manage their costs and staffing needs during uncertain times while still getting the best talent for the workforce,” (Health Carausal, 2021). Many hospitals and other healthcare facilities are utilizing the services of an MSP due to the many benefits offered.
What are the benefits of an MSP?
There are many benefits to utilizing an MSP for contingent labor, such as real-time staffing solutions, access to account manage experts, financial savings, increase in overall satisfaction, and the ability to have more time dedicated to strategic planning and patient experience. MSPs are also useful because they reduce the stress of recruiting, credentialing, and vetting possible candidates while providing cost-saving solutions.
Healthcare organizations have also been driven to make use of MSPs because of the transparency they provide. An article discussing the benefits of an MSP states, “An MSP will provide a single centralised source of truth for all contingent workforce activity. Organisations using an MSP benefit from being able to quickly and accurately report on metrics such as: costs, contingent labour usage, supplier performance, worker quality and contingent recruitment cycle times,” (Morren, 2023). These services are also valued because of the mitigated risks, increased productivity, and the enhanced quality of the talent that is brought into healthcare facilities (Morren, 2023). Without an MSP, healthcare organizations would have to scramble at the last minute to find candidates, often when they need them most.
What is a VMS?
While some people may not be entirely familiar with a vendor management system (VMS), it is a valuable technology tool that is essential for healthcare businesses everywhere.
Vendor management system (VMS) technology allows healthcare businesses to simplify their staffing process to efficiently manage both internal and external candidates when in need of a new hire. By utilizing a VMS, you no longer need to manage multiple services and vendors. Instead, you can use one dedicated partner to keep track of reporting, compliance, staffing needs, and invoicing.
What are the benefits of VMS?
When it comes to VMS, there are a wide range of benefits that it brings to the table. For instance, VMS is perfect for healthcare businesses because it is customized to fit each company's needs. Further, VMS benefits healthcare staffing agencies because it guarantees compliance, minimizes spending, increases transparency, enhances the on-boarding process and experience for new hires, promotes a more integrated workforce, reduces requisition cycle time, and much more (SAP, n.d.).
Utilizing a VMS is crucial when it comes to solving your hiring needs. VMS technology offers important features in the staffing industry, such as the ability to reduce potential risks, increase efficiency, promote effective communication, and automate job searches for candidates (BCS, 2022). Serving as a valuable tool in the healthcare staffing industry, VMS technology continues to solve many problems regarding staffing shortages.
What is the difference between MSP and VMS?
Both managed service providers and vendor management systems are integral parts of any contingent labor program. However, it is important to know the difference between the two so they can be used most effectively. The biggest difference to note between an MSP and VMS is the fact that an MSP is essentially the third-party group or company, while VMS is the technology that is used by the third-party group or company to manage contingent labor to provide staffing solutions (Monument Consulting, n.d.). Many healthcare facilities utilize both an MSP and a VMS to get the desired outcome of their contingent labor workforce.
Why choose Favorite as your MSP and VMS?
With Favorite Healthcare Staffing, you’ll have a single source partner that will provide a full range of staffing solutions that are guaranteed to meet your organization’s specific needs. By choosing Favorite, you’ll gain access to general consulting services, recruitment specialists, requisition management, technology that includes census tracking integration for real-time scheduling adaptation, float pool management, and so much more. With a 98% fill rate, a 20% reduction in time-to-fill, a 12% reduction in staffing costs, and 27% average time savings, Favorite has the numbers to prove our success. Visit our website today to learn more about the managed service provider and vendor management services we offer.
It is apparent that these tools can and should be used by healthcare facilities and organizations to increase efficiency within the workplace. With all the benefits that are offered from these services, it would be advantageous for healthcare facilities to consider partnering with an agency that can provide the necessary resources when in need of contingent workers. Save time, money, and stress by partnering with an MSP and VMS supplier. We hope this blog has cleared up some confusion about what an MSP and VMS really are, as well as the difference between the two.