Magnit BrandVoice: 4 Ways Managed Service Providers Can Stabilize Labor Costs And Utilization In Healthcare

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Magnit BrandVoice: 4 Ways Managed Service Providers Can Stabilize Labor Costs And Utilization In Healthcare
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Healthcare executives are turning to contingent labor, or contracted and other non-full-time employees, since these on-demand talent pools are helping solve short-term...

, come back to the office. Reluctant to return to the commuting life and related stressors, some workers are leaving for more flexible positions. In certain industries, this reluctance is becoming a full-blown crisis.“Nurse and allied health professionals got a taste for the travel life [during Covid],” says Matt Jensen, SVP of client services at. “Hospitals are trying to fill their core vacancies, [but it’s difficult] to pull clinicians back into full-time permanent positions.

Here are four key ways MSPs can help stabilize labor costs and optimize workforce management in healthcare:Before Covid-19, hospitals used contingent labor to mainly cover seasonal census fluctuation, unexpected absences and hard-to-fill clinical specialties, Jensen says. Their reliance on contract workers was once in line with other industries, but now it’s outpacing them. This is cause for concern if these workers are managed in an ad-hoc, fragmented fashion.

“One would think that hospitals and health systems would have some [way] to manage their contract labor headcount, but they don't. [In] most cases, they don't have whole system visibility and data reporting around it,” Jensen says. “We’re collecting and validating 100% of all compliance requirements that are needed before workers start an assignment and provide continuous compliance monitoring through the duration of the assignment, including background checks, certifications, licenses and all other client-specific requirements,” Jensen says.With more healthcare professionals declining full-time work in favor of more flexible options, hospitals are facing a talent crunch.

“We’re helping [hospitals] pull the rates down in an aggressive but controlled manner, and we're doing that through data market analytics,” Jensen says. “It’s a fine balancing act.”Whether it’s an unexpected absence, seasonal demand or a special project, contingent talent is typically used to fill staffing shortages. But many companies also hire with hopes of converting contractors to full-time status.

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