$9.1 Million
Savings stemming from the reset of rates to market value, and improved volume and demand management
4,000
Number of contingent workers compliantly onboarded through the MSP
3x Growth
Rise in spend under management from pre-partnership to year three of the program
Healthcare organizations rely on contingent workers for a wide range of critical skills, from clinical categories such as nurses, allied health professionals and physicians to non-clinical management, administration, finance and IT. Unfortunately, such flexible resources are often engaged through separate departments or locations, creating persistent challenges including a lack of visibility into contingent workforce spend, compliance risks and limited access to the full supply of available workers.
For a major provider of renal care and dialysis treatment, bringing the distinct channels of extended workforce engagement into one managed service provider (MSP) program offered an opportunity to address these ongoing challenges. To do so, the company switched from an approach that relied on a sole source vendor supported by sub-vendors for specific nursing roles to engaging Allegis Global Solutions (AGS) as part of a broad extended workforce strategy.
Stable Supplier Base
A customized, results-driven supply chain to support all lines of business
Expanded Skills Coverage
Program growth from a clinical-only focus to include non-clinical skills
Gaining Control of the Extended Workforce
The move to AGS has yielded more than $9 million in cost savings while achieving the strategic advantages needed to succeed in a demanding healthcare arena.
The Challenges
Inconsistent processes were a key issue. Before the AGS MSP, each business group was responsible for its own temporary workers, resulting in multiple contracts with varying terms of service and rates. Limited skills management have been a challenge. An incumbent MSP partner only covered clinical roles, using its own staffing services as the preferred supplier, thus limiting access to the total network of potential suppliers. Large, unmeasured spend was another issue. Although the program managed $15-$25 million in clinical spend, the non-clinical spend was significant but outside the program and therefore unmeasured.
The Program
After an extensive RFP process, the organization selected AGS to implement an MSP program to initially support non-clinical roles, including administrative, professional engineering and IT skills, and AGS vetted 70 suppliers to support these roles. By the end of year one, AGS took over an incumbent MSP’s clinical workforce management, launching a vendor-neutral program with 30+ specific suppliers that focus on traveling nursing for dialysis.
The Evolution
Notably, the AGS relationship with this organization covers all worker types, including employee talent acquisition through its initial recruitment process outsourcing (RPO) solution, which then grew to cover the extended workforce through MSP. Over time, the MSP program expanded in coverage and strategic value. In its second year, the program expanded into light industrial assignments, vetting and adding 20 more suppliers and increasing headcount covered in the MSP by roughly 30%.
Capturing Value
With a rapidly evolving market and changing demands for talent, the organization’s strategic approach to managing the contingent workforce delivered multiple performance advantages that are important to success in a competitive healthcare industry.
Cost Improvement
Roughly $9 million in spend reduction was achieved through the first two years since program implementation, including:
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$5.7 million annualized savings due as incumbent worker and supplier costs reset at market value
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$1.3 million savings resulting in improved demand management
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$2.1 million annualized savings from cost-control initiatives
Expansion Across Key Skills
During the evolution of the program, AGS provided the broad contingent workforce capability to take on supplier management in all fields associated with the company’s operations, including:
• Non-clinical skills: Administrative roles, professional/engineering and IT (70+ suppliers)
• Clinical roles: Chronic and acute dialysis RNs, patient care technicians, and assorted other roles (30+ suppliers, moving the company from an incumbent,
preferred-vendor MSP to a vendor-neutral model with broader access to talent)
• Added categories: Light industrial (added in year two with 20+ additional suppliers)
Compliance Improvement
Data protection and privacy, worker classification and the management of needed certifications in many fields create significant regulatory demands in the healthcare industry. Since its launch, AGS has vetted more than 4,000 workers through a common process that provides a new level of enterprise vigilance on all extended workforce compliance needs.
Growth in Effectiveness Through Spend Under Management
Prior to the AGS partnership, the company managed roughly $35 million in known contingent workforce spend and sought to take better control of additional spend identified outside this managed amount. During year one of the AGS MSP program, the organization’s spend under management increased to $70 million. The program is now managing between $95 to $120 million, aligning with business and market demand. Larger spend under management enables more effective outcomes in managing costs, access to talent and compliance across the workforce.
Global Readiness
By bringing a consistent management process into place, the organization now has a foundation to expand it’s strategy across regions. For potential future growth in the EMEA region, AGS has the global reach, tenure and expertise to drive an effective contingent workforce strategy across all locations.
Universal Workforce Evolution
The MSP program has evolved to support a total workforce strategy covering both contingent workforce suppliers and permanent hires. The partnership with AGS’ RPO and MSP solutions enables a clear view into the workforce for procurement and talent acquisition functions alike.
Adopt an MSP to Support the Growing, Complex Healthcare Workforce
When it comes to workforce solutions partnerships in the demanding healthcare industry, capability is everything. Organizations have many options when considering a partner to improve contingent workforce impact, but limitations in a solution provider’s ability can reduce the value and longevity of your workforce solutions partnership. AGS provides the strategic advantage organizations in the healthcare space need to excel.
Total Clinical/Non-Clinical Workforce Capability
An MSP partner with strong experience and supplier reach across all workforce categories can deliver the scalability and growth that a niche clinical provider simply cannot support. AGS is a proven provider in managing supplier networks and accessing talent across all healthcare categories.
Extended Workforce Expertise and Technology
Data-driven decision-making is the foundation of an effective extended workforce strategy. If your partner only provides visibility into part of your extended workforce, you miss out on cost and performance value. AGS offers the technology and expertise needed to drive visibility into the talent supply and performance of suppliers being engaged across the organization.
Transformative Total Workforce Management
Deliver on today’s goals and lead with an eye on the demands that a changing world of work will bring. AGS aligns its industry leadership, investment in technology and development of its people to help you better engage the resources you need to “get work done.”
Get the Most From the Extended Workforce
From local, regional and industry-specific companies to large multi-market global enterprises, AGS helps organizations of all sizes and stages of growth turn the extended workforce into a business advantage. Learn more about how our workforce solutions experts can help you.
