There are several models of vendor management and finding the right model to fit your specific needs is imperative to the success of the program. Listed below are the most common vendor management models used in healthcare:
Since a vendor neutral VMS program administrator does not compete with supporting vendors, there is no conflict with potential candidate solicitation, ultimately increasing the submission of qualified candidates to the client. Vendor neutrality also encourages vendor participation which expands client access to quality healthcare service.
Charges for vendor management services vary depending on the program model implemented. Charges for a truly vendor neutral vendor management services (VMS) are typically all-inclusive bill rates which include a management fee percentage. This fee percentage can vary based on the client’s current circumstances, job classifications needed, patient care setting, geographic location(s), market dynamics and the recruitment resources required to fill the positions. If the program is implemented correctly, clients can ultimately achieve significant cost savings.
Charges for Master Service Provider and/or Master Supplier Partner (MSP) are also all-inclusive bill rates with a management fee percentage that will vary, usually based on volume. A staffing company provides the MSP type of service, and they require higher margins than a VMS administrator due to contingent worker payroll obligations and other factors motivating them to continually increase client rate and billing volume.
Vendor management service administrators cannot be TJC accredited. Vendor management services can follow the guidelines of the TJC and ensure the companies providing the actual staff services are TJC accredited.