Determining market equilibrium pricing can be complex, but it doesn't have to be. Healthcare Workforce Logistics (HWL) is uniquely positioned to act as an honest broker for our clients. Unlike an agency-managed MSP program, we offer the ability to have one set rate with all vendors, tiered rate structures, or individual rates with each agency. We also monitor and assess agencies’ performance on an on-going basis and continuously monitor market pricing to achieve cost reductions on locums, nursing, and allied health professionals.
How Decreased Demand Impacts Market Pricing
The pandemic has dramatically altered the relationship between price and demand. Evidence of a percentage shift in the demand market can be gleaned from Cross Country Healthcare’s (CCH) recently released Q2 financials. Most notably, CCH reported a substantial decline in the number of field employees on assignment, shorter assignment lengths, and significant disruptions to the market or “unprecedented rapid swings of demand both up and down.”
As a result, it is anticipated that vendors will respond by lowering prices—presenting the perfect opportunity for care delivery organizations to complete a market rate analysis and negotiate lower labor rates. But the reality is that most health systems do not have the resources to conduct a market rate analysis or know the advanced methodology behind one. This is where HWL excels, perfecting the market rate analysis process and offering the analysis at no additional cost when enrolled in a managed service.
Data-Driven Approach to Labor Management
A market rate analysis relies on data from several sources to provide rates by specialty. In addition, the rates include a combination of local, regional, and national variances. If you are negotiating rates with agencies individually and without the benefit of a competitive process, then you’re likely overpaying. To truly take control of agency spend, hospitals must benchmark labor costs and perform a market rate analysis; and given current market conditions, time is of the essence.
The combination of HWL’s vendor-neutral philosophy, access to real-time market intelligence regarding demand activity for healthcare professionals, and deep-rooted industry expertise, positions HWL as the ideal partner to perform a market rate analysis. As such, we can make recommendations for period adjustments to rates up or down, based on unbiased clean data and analytics.
How HWL Saves You Time & Money
- Perform comprehensive market rate analysis
- In-depth analyzation of current bill rates
- Rate recommendations and finalize rate card
- Audit agency submissions
- Review current vendors to establish final vendor panel
- Finalize scope of work
- Distribute new standardized contract to the vendor panel
- Train recruiter personnel on Vendor Management System
- Announce GO Live Date to vendors
Contact HWL to Request a Market Rate Analysis
Whether it’s Local or Travel, Contract or Per Diem, Clinical or Non-Clinical, HWL VMS delivers heightened visibility, efficiency, and compliance while improving overall quality of staff. Learn how HWL can save your health system time and money with a comprehensive and customized market rate analysis. Contact us today.