A Managed Service Provider (MSP) can be a valuable partner to healthcare organizations by managing its vendor network through insightful integration resulting in both hard and soft cost savings.
There are five core ways an MSP cuts costs:
1. Hiring efficiencies
2. Minimize turnover
3. Reduce exposure
4. Lower labor spend
5. Leverage business analytics
A hiring manager might sift through dozens of resumes to find a handful of quality candidates for a single position. Then starts the interview and credentialing process. The one or two people that make it through that step make their way to contract negotiation and finally onboarding. Now think about that process but multiplied by the number of open positions an organization may have over the course of a year. A reputable MSP becomes an extension of the HR department weeding through the process for every open position and with every candidate saving precious time and resources.
A right-sized staff carries tremendous weight in keeping permanent employees content and onboard, which has direct implications on patient satisfaction. By partnering with an MSP, you have access to a pipeline of qualified candidates who can quickly fill the inevitable staffing fluctuations before a void becomes too straining. In addition, if a contingent worker does not work out for a myriad of reasons, there is a pool of experienced candidates an MSP can choose from and will work to get them quickly up to speed.
Working with an MSP means their robust vendor insurance policies and procedures eliminate exposure for the contracting healthcare organization. There’s an increased level of vendor visibility plus they ensure all employees meet compliance standards and thus mitigate the risk the hospital or office carries on their end.
Lower labor spend
All healthcare organizations watch their labor spend, and working with an MSP is like another department full of eyes minding that shop. Cost containment is achieved through decreased training costs, avoiding vacation and sick pay, and reduced employment taxes. Centralization helps stabilize an organization’s contract labor force thereby lowering the labor spend.
Leverage business analytics
An MSP provides a combined level of expertise and third-party guidance when analyzing an organization’s businesses data. They identify staff redundancies while at the same time forecast needs so there is a sufficient time to prepare and even create efficiencies.
If you are looking to cut costs in the new year, consider researching how an MSP can help you achieve your fiscal goals. PPR provides custom solutions to healthcare organizations of all sizes across the country. We welcome the opportunity to show you how we can help. Contact us today.