What Is a VMS for Staffing? FAQ for Facilities

With the shortage of healthcare workers impacting the industry, keeping units fully staffed is an ongoing challenge. Because of this, many facility leaders rely on third-party agencies to help fill vacant shifts. However, managing contract staff from various agencies can be quite the task in itself, warranting the use of Vendor Management Systems (VMS) to help streamline these interactions. But what is a VMS in staffing and how does it work?

If you’re a facility leader who works with multiple staffing agencies, you may be considering the use of a VMS. We’ll answer some of the most frequently asked questions about this software to help you decide whether it’s right for your facility.

What Is a Vendor Management System?

Broadly speaking, a VMS is cloud-based software that provides companies with a centralized platform for managing relationships with third-party vendors. Through this system, companies are able to more efficiently vet and oversee any services that are being contracted from external organizations.

What Is a VMS in Healthcare?

In healthcare settings, a VMS is primarily used to manage contingent talent, which can include both per-diem and contract staff (such as nurses, doctors, and physical therapists) who are hired from third-party agencies. Essentially, a VMS provides a centralized, automated hub for healthcare facilities to more easily:

• Find and contact third-party staffing agencies.
• Onboard and offboard contract staff.
• Manage payroll services for temporary staff.
• Fill vacancies from a centralized talent pool.
• Audit the performance of temporary staff.

How Do Vendor Management Systems Work?

Beyond asking, What is a VMS? you may be wondering how these systems work. There are many different VMS suppliers on the market, and each one offers slightly different tools and services within their platforms. VMS system examples include BlueSky, CENTRAFI, and Smart Square. Essentially, facilities must contact and purchase VMS software from a supplier of their choice in order to set it up for use.

Once the software is activated, facilities will have a centralized and automated system to manage all of their third-party vendor interactions and relationships. Each VMS supplier typically has its own process of helping facilities integrate the software into their operations. Contacting several different suppliers and requesting live demos can help you find a supplier that best meets the needs of your facility.

What Is the Difference Between MSP and VMS?

Some healthcare facilities also use a managed service provider (MSP) to help streamline staffing services. Unlike a VMS, which refers to a type of technology, an MSP refers to a team of real people that’s supported with technology. An MSP is essentially a third-party business that takes over the staffing workflow at a healthcare organization. They may even use a VMS to supply their own services.

What Are the Benefits of Using VMS?

A VMS can offer many benefits for facilities that frequently hire staff from third-party agencies and vendors. These benefits include:

• Increased efficiency: Having a centralized, automated system allows facilities to easily connect with staffing agencies and fill shifts more efficiently.

• Cost savings: By minimizing the need for repetitive, administrative tasks like onboarding and candidate screening, facilities can save money through improved productivity.

• Flexibility and scalability: VMS systems offer opportunities to make staffing more scalable and flexible. An automated system can adapt to changing staffing needs and be used across several different departments at a facility.

• Informed decision-making: A VMS unlocks access to centrally stored, electronic data. This allows facilities to make more data-driven decisions about their staffing strategies.

• Improved regulatory compliance: A VMS allows facilities to centrally store staff certifications, contracts, and credentials. This helps reduce the risk of being non-compliant with staffing regulations.

What Are the Drawbacks of Using VMS?

While a VMS can bring many benefits to facilities, it can also pose some challenges. Below are a few common drawbacks of utilizing a VMS system for staffing:

• Initial start-up costs: While a VMS is designed to help reduce administrative costs over time, the initial start-up costs of purchasing the software and training staff can be high.

• Risk for system failures: A downside of having an automated staffing management system is the risk for system failures. Any issues with the technology can cause a disruption to day-to-day operations.

• Low quality vendors: Some vendors might fill their systems with unqualified or mismatched staff to fill quotas. This can make it more difficult to find quality services.

• Less personal interactions: Automation can reduce the need for personalized interactions with contract staff, which may inhibit relationship building.

• Training burden: The adoption of new technology can be confusing, and staff must be thoroughly trained before its efficiency can be maximized.

Find a Customized Staffing Solution That Works for You

Now that you can answer the question, What is a VMS? you may also be considering other staffing options that can provide long-term stability. Connect with us today and discover how IntelyCare can help you consistently fill your shifts with reliable and quality nursing staff.