Q: What are the different vendor management program models? +
A: 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 manages process for contingent labor, but all staff and services are supplied through client’s existing vendors and additional resources as needed.
-Off-site Vendor Management Service (VMS): The consolidation of contingent labor supported remotely by vendor management service.
-Master Service Provider or Master Supplier Partner (MSP): The consolidation of contingent labor through a main vendor supplying a majority of the staff and services, with additional vendors utilized as needed.
-Contingent Workforce Management Technology: The implementation of contingent workforce management technology managed by the client.
-Client-Site Vendor Neutral Vendor Management Service (VMS): The consolidation of contingent labor with client-site support. Vendor Management company manages process for contingent labor, but all staff and services are supplied through client’s existing vendors and additional resources as needed.
-Off-site Vendor Management Service (VMS): The consolidation of contingent labor supported remotely by vendor management service.
-Master Service Provider or Master Supplier Partner (MSP): The consolidation of contingent labor through a main vendor supplying a majority of the staff and services, with additional vendors utilized as needed.
-Contingent Workforce Management Technology: The implementation of contingent workforce management technology managed by the client.
Q: What are vendor credentialing and access management? +
A: Vendor credentialing & Access Management is the process of ensuring that the individuals and entities accessing hospitals and selling goods and services meet the standards and requirements of the purchasing healthcare organizations.
Q: How do vendor management companies charge for services? +
A: 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 containing a management fee percentage. This fee percentage can vary based on the client’s current circumstances and over all the new average bill rates will be lower. 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 bill rates with a management fee percentage that will vary, usually based on volume. Because a staffing company is providing the services as an MSP, there is a vested interest to increase the staffing volume. In some cases this may result in clients receiving a low bill rate but an increase in staffing utilization.
Charges for contingent workforce management technology typically include leasing fees by percentage based on the total volume of business processed through the technology. There are also occasions of flat service rates per month, semi-annually or annually depending on the client’s needs. Client does need to consider the fact of having to manage and maintain another system and ensure the entire organization uses the technology to ensure it is cost effective and decreases administrative burdens.
Q: Can vendor management services be TJC accredited? +
A: Vendor management services cannot be TJC accredited. Vendor management services can follow the guidelines of the TJC and ensure the companies providing the actual staff and/or services are TJC accredited. This is on the agenda for discussion at the TJC with a date TBD.
Q: What are the risks if hospital clients use independent contractors or use vendors supplying independent contractors? +
A: There are several risks associated with the use of independent contractors to fill temporary positions either directly or through a staffing agency. There are many times where the classification is made based on nothing more than an agreement between the employer and the IC. When this occurs, the exposure to the employer and any client using IC’s from an employer can be significant because even though the company and the IC have agreed on their classification, it doesn’t mean the IRS will concur. It’s important to understand IRS guidelines to ensure ICs are independent or any cost savings you may have realized up front can be quickly eclipsed by the penalties, interest and other costs incurred as a result of an improper classification.