Frequently Asked Questions

What are the different vendor management program models?

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:

  • Client-Site Vendor Neutral Vendor Management Service (VMS): The consolidation of contingent labor with client-site support. Vendor Management company administers the program, but all staff and services are supplied through supporting vendors.
  • Off-site Vendor Management Service (VMS):  The consolidation of contingent labor supported remotely by vendor management service. Vendor Management company administers the program, but all staff and services are supplied through supporting vendors.
  • Master Service Provider or Master Supplier Partner (MSP):  The consolidation of contingent labor through a prime vendor supplying a majority of the staff and services, with additional vendors utilized when prime vendor is unable to fill orders.
  • Contingent Workforce Management Technology:  The implementation of contingent workforce management technology managed by the client.
What is a vendor neutral VMS program model?

A vendor neutral VMS program model means that the company that administers the program does not provide staffing services directly and does not compete with the vendors supporting the program.

Why is a vendor neutrality important?

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.

How do vendor management companies charge for services?

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.

Can vendor management services be TJC accredited?

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.