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MSP Cost Savings: 9 Tangible Ways To Save Money and Increase Revenue With an MSP

Written by , MSP
May 22, 2023

If you are a hospital administrator, healthcare HR representative, or nursing manager, you’ve probably heard about many of your competitors who have switched over to using MSPs for their facilities.

They can’t say enough good things about the many tasks their managed service provider has taken off their plates, which in turn lets them focus on more critical aspects of their jobs.

Are they really as good as people say? And how, exactly, are they supposed to save you money?

We’ll describe a dozen ways you can save money and increase revenue with an MSP, and then we’ll help you decide if it’s the right choice for you and your facility.

 

Table of Contents

 

 

Can Managed Service Providers Help Healthcare Providers Save Money?

Not only can MSPs save healthcare providers money, but they can also save tons of time and reduce the hassles that occur when hospital administrators try to manage everything themselves.

Many healthcare facilities are switching to MSPs because managing contingent staff isn’t a core competency for them. By making an initial investment with a managed service provider, hospitals and clinics can experience extreme cost savings and increased revenue.

Besides all the time and money you can save by using an MSP, there are also many legal implications involved. A managed service provider can make sure your facility is on track with all compliances so there’s nothing but smooth sailing ahead.

 

 

9 MSP Cost Savings Healthcare Providers Can Get Behind

Let’s get into the specifics showing how MSPs are the real deal and can make a difference in the bottom line at your facility.

 

#1: Superior Competitor Analytics

When you partner with a managed service provider, they do the work for you. Trusted Managed Services can provide in-depth analytics, such as:

  • Reports on spend utilization to help you track budgeting
  • Average bill rates in your area to help you stay competitive
  • Staff headcounts and sourcing efficiency data
  • And more

This data can help you efficiently source top-tier talent while utilizing your budget as efficiently as possible.

 

#2: Increased Staff Retention

According to a 2022 NSI National Health Care Retention & RN Staffing Report, hospital turnover rates are sitting at 25.9%, which is a 6.4% increase from 2021.

This significant increase in turnover can cost hospitals millions of dollars. The average turnover cost for a bedside nurse can range from $28,400 to $51,700 according to Beckler’s Hospital CFO Report.

An MSP can help reduce turnover rates by increasing workforce efficiency. By providing a reliable and fully-managed source of temp workers, a healthcare MSP can reduce the workload for your full-time staff, allowing them to focus more on their job roles and capabilities without experiencing burnout.

 

 

#3: Decreased Recruitment Spending

Recruiting and engaging with high-quality talent can be a hefty expense and recruiting costs and time-to-fill are continuing to spike in the healthcare industry.

According to an AKASA survey, cost and time-to-fill are spiking across all levels:

  • Entry-level revenue cycle talent (0-5 years): $2,167 cost on average for recruitment and takes 84 days to fill vacant roles.
  • Mid-level revenue cycle talent (6-10 years): $3,581 cost on average for recruitment and takes 153 days to fill vacant roles.
  • Senior-level revenue cycle talent (10+ years): $5,699 for cost on average for recruitment and takes 207 days to fill vacant roles.

With Trusted Managed Services, you can utilize VMS services to manage recruiting and sourcing staff at no cost to your facility, as bill rate fees are charged to the vendors participating in the VMS service. This can significantly help offload recruiting costs.

 

#4: Reduced Labor Costs

MSPs boast many services that make it easier for you to trim down your labor costs.

A survey report by Staffing Industry Analysts (SIA) suggests that utilizing an MSP for contingent workforce management can result in as much as 20% overall savings on contingent staffing and placement fees compared to operations without an MSP year-over-year.

Trusted Managed Services can take over most of the jobs you used to pay many staffers to do at a fraction of the cost.

 

#5: Streamlined Onboarding Processes

When your managed service provider takes over onboarding, many components such as …

  • Employee data and paperwork
  • Distribution lists; and
  • Policies

… become automated. 

Having someone else to manage documents and make sure everything is up to date takes all the weight off of the facility. Now directors and managers can spend their time managing their workforce.

Also, since the healthcare facilities that use MSPs no longer have to house employee information, there doesn’t need to be a concern about data sensitivity or breaches.

 

#6: Dramatically Reduced Fill Times

Time to fill rates for vacant roles can slow down efficiency and increase expenses for your facility.

An MSP can help close the gap in fill times by providing access to a contingent workforce through VMS services. Detailed analytics also provide insight into time-to-fill trends for your facility, which can help you make more informed staffing decisions.

 

 

#7: Improved Vendor Cost Controls

The technology used by an MSP allows them to keep a close eye on vendor costs.

This not only helps your healthcare facility avoid overspending, but it also keeps management from having to negotiate with many different agencies. The managed service provider can be the “bad guy” and enforce billing rates.

 

#8: Improved Forecasting Capabilities

Using a managed service provider can give you more visibility and control over your bottom line. Let your MSP assist you with things like predicting future expenses and budgeting for them based on current trends.

With in-depth analytics such as budget to actual details, your facility can make more informed spending decisions that align with your budget.

 

#9: Consolidated Accounts Payable

Using an MSP will streamline your accounting practices. Instead of having to keep up with multiple invoices from various vendors, all with different due dates and submittal requirements, you’ll get one consolidated bill from your managed service provider.

Consolidating billing and payroll can save your facility money in two different ways:

  1. It can help increase the accuracy of cash flow predictions by decreasing late payments due to oversight.
  2. It can cut down labor costs by reducing the time spent on billing management.

 

 

What’s the Alternative to a Healthcare MSP?

Hospitals and other healthcare facilities that don’t use MSPs must manage everything themselves. Instead of letting a third party handle recruiting, staffing, payroll, and much more, directors and managers must directly communicate with each department separately, opening the door for miscommunication and lack of synchronicity.

An MSP not only helps save money but also provides a 360-view of your hospital operations. This visibility can help increase the efficiency of your facility and workforce. Click here to read more about the full benefits of hiring an MSP.

 

Trusted Managed Services — Saving You Time and Money

Our goals as an MSP provider is simple:

  • Boost efficiency and cost savings for your facility.
  • Eliminate pain points and internal staff burdens in staff recruitment and improve the quality of your contingent workforce.
  • Provide sophisticated reporting to increase transparency and visibility into contingent workforce data.
  • Deliver high-quality customer service to streamline and scale your operations.

With Trusted Managed Services, you can expect simple, automated solutions that save your facility time and money. Our MSP is designed to seamlessly integrate with your hospital’ existing systems and workflows.

Contact us today to request a demo and see firsthand how we can be a valuable asset to your facility. 

 

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