Learn how a VMS system helps healthcare organizations manage staffing vendors, improve visibility, control labor costs and fill roles faster.

In short, a VMS system in healthcare is technology that helps hospitals and health systems manage contingent labor vendors, job orders, candidate submissions, compliance steps, assignments and reporting in one connected workflow. For organizations working with multiple staffing agencies across nursing, allied, locums, per diem and non-clinical roles, a vendor management system gives leaders more control over speed, cost, quality and visibility.

 That matters because healthcare workforce management is not getting simpler. The Bureau of Labor Statistics projects <a href="https://www.bls.gov/ooh/healthcare/registered-nurses.htm?utm_source=chatgpt.com" rel="noopener noreferrer" target="_blank">healthcare occupations will grow much faster than the average</a
 >, with registered nurse employment also projected to grow 5 percent from 2024 to 2034. HRSA also <a href="https://www.bls.gov/ooh/healthcare/registered-nurses.htm?utm_source=chatgpt.com" rel="noopener noreferrer" target="_blank">projects continued nursing supply and demand challenges,</a> including larger projected registered nurse shortages in nonmetropolitan areas by 2038.

When labor pressure rises, manual staffing processes break down quickly. Email chains, spreadsheet tracking, inconsistent vendor communication and disconnected credentialing steps make it harder to fill roles quickly and understand what is really happening across the workforce. A strong VMS system gives healthcare organizations the infrastructure to manage staffing activity with more discipline.

 For organizations evaluating a more connected approach, <a href="https://www.crosscountry.com/workforce-solutions" rel="noopener noreferrer" target="_blank">Cross Country VMS and staffing optimization solutions</a> can help align staffing operations, vendor performance and workforce visibility in one strategy.

<h2>What Is a Vendor Management System in Healthcare Staffing?</h2>
A vendor management system in healthcare staffing is a technology platform used to centralize how an organization requests, manages, tracks and reports on contingent labor.
In practical terms, a VMS system helps healthcare teams manage open job requisitions, vendor distribution, candidate submissions, rate management, credentialing, compliance status, assignment details, timekeeping, invoicing workflows, vendor performance reporting and spend data.
For hospitals, the value is not only automation. The bigger value is control. A healthcare VMS creates a standardized process for how staffing needs move from request to fulfillment, which helps reduce missed steps, duplicate work and inconsistent vendor practices.
Without that structure, workforce teams often have limited visibility into which agencies received a request, how quickly candidates were submitted, why roles are aging, which vendors are performing and where rates are drifting above plan.
A VMS system gives those answers a place to live.
<h2>VMS vs MSP: Understanding The Difference in Staffing Models</h2>
A VMS and an MSP are often discussed together, but they are not the same thing.
A VMS is the technology. It provides the platform used to manage staffing vendors, requisitions, candidate submissions, compliance steps, assignments, reporting and workforce data.
An MSP, or managed service provider, is the operating model. The MSP is the partner or team responsible for managing the contingent labor program, supplier relationships, fulfillment strategy, governance and performance outcomes.
The simplest way to explain the difference: the VMS system organizes the workflow and data, while the MSP manages the program.
Some health systems use a VMS on its own. Others use a VMS as part of a broader MSP or workforce solution. The right model depends on the organization’s size, internal resources, vendor complexity, labor categories and desired level of operational support.
A hospital with a small contingent labor program may need technology to bring more structure to agency management. A large health system with multi-state operations, multiple labor categories and high agency utilization may need both the technology and the operating discipline of an MSP partner.

 That is where <a href="https://www.crosscountry.com/workforce-solutions" rel="noopener noreferrer" target="_blank">healthcare workforce solutions</a
 > can support a broader staffing strategy beyond the platform alone.

<h2>Key Benefits of Using a VMS System for Healthcare Workforce Management</h2>
A VMS system should make healthcare staffing easier to manage, not harder to navigate. The strongest platforms improve speed, cost control, compliance and decision-making.
<h3>Faster Staffing Workflows</h3>
Healthcare staffing delays create operational pressure. Open roles can increase overtime, strain internal teams and create coverage risk.
A VMS system helps speed up the process by standardizing how jobs are created, distributed and managed. Instead of relying on one-off emails or manual follow-up, workforce teams can distribute needs to approved vendors, track submissions and monitor progress in one platform.
That improves accountability. Leaders can see where a requisition stands, which vendors have responded and what actions are needed to move qualified candidates forward.
<h3>Stronger Cost Control</h3>

 Labor remains one of the largest expenses for hospitals and health systems. The American Hospital Association reported that <a href="https://www.aha.org/costsofcaring" rel="noopener noreferrer" target="_blank">total compensation and related expenses now account for 56% of total hospital costs</a
 >, making workforce cost management a major financial priority for healthcare leaders.

Vendor management systems help by giving teams better visibility into bill rates, rate exceptions, overtime, vendor fees, utilization patterns and total contingent labor spend.
That does not mean a VMS automatically lowers costs. Technology alone cannot fix a weak workforce strategy. The value comes when leaders use the data to spot variation, enforce rate discipline, compare vendor performance and make smarter sourcing decisions.
<h3>Better Compliance Tracking</h3>
Healthcare staffing is not just about filling shifts. It also requires credentialing, licensure, background checks, health documentation, facility-specific requirements and ongoing compliance monitoring.
A VMS system can help teams track candidate and assignment compliance in a more consistent way. That reduces the risk of missing documentation, delaying starts or relying on manual status updates across multiple vendors.
For healthcare organizations operating across different facilities, states or labor categories, that consistency matters.
<h3>Clearer Vendor Accountability</h3>
Not every vendor performs the same way. Some submit faster. Some provide stronger candidates. Some may have higher fall-off rates or lower compliance readiness.
A vendor management system gives healthcare leaders the ability to compare performance using actual program data. That may include time to submit, fill rates, quality indicators, cancellation trends, compliance speed and rate alignment.

 This is where <a href="http://www.intellify.com/" rel="noopener noreferrer" target="_blank">Intellify workforce intelligence platform</a> can strengthen the value of VMS data by helping teams move from basic tracking to clearer workforce intelligence.

<h2>How VMS Systems Improve Visibility Across Staffing Vendors</h2>
Visibility is one of the most important reasons healthcare organizations invest in a VMS system.
When staffing activity is spread across email, spreadsheets, local facility processes and disconnected vendor portals, leaders rarely have a reliable picture of what is happening. They may know open roles are growing, but not why. They may see agency spend increasing, but not which patterns are driving it. They may hear that vendors are underperforming, but lack the data to prove it.
A VMS system brings vendor activity into one environment so teams can track which roles are open, how long they have been open, which vendors received each order, which vendors submitted candidates, where each candidate stands, what compliance steps are pending and how spend is trending across the program.
This visibility helps workforce leaders move from reactive problem-solving to more proactive management.
For example, if a role has been open for several days with limited submissions, the team can identify whether the issue is rate, job requirements, vendor response, market supply or internal approval delays. If a vendor consistently submits candidates who do not clear compliance, leaders can address the issue with data instead of anecdotes.

 AHRQ has noted that <a href="https://www.ahrq.gov/" rel="noopener noreferrer" target="_blank">achieving appropriate levels of nurse staffing is critical for patient safety</a
 >. That makes visibility into temporary and contingent staffing activity important for patient safety, operational planning and financial oversight.

A VMS does not replace workforce leadership. It gives leaders the information they need to make better decisions faster.
<h2>How Hospitals Use Vendor Management Systems to Reduce Costs and Improve Fill Rates</h2>
Hospitals use vendor management systems to create a more disciplined staffing process across agencies and labor categories.
The most effective programs usually focus on two outcomes: reducing avoidable cost and improving access to qualified talent.
Cost reduction can come from several areas. Standardized rate management helps limit unnecessary variation. Better vendor oversight helps leaders understand which suppliers are delivering value. Improved reporting helps identify overreliance on certain labor categories, facilities or high-cost vendors. Stronger workflow control can also reduce administrative waste by cutting down on manual follow-up and duplicate work.
Fill rate improvement comes from better process visibility. A VMS system can help teams see where requisitions are slowing down and which vendors are responding with qualified candidates. It can also support faster distribution of needs, clearer candidate tracking and more consistent communication.
The real opportunity is not only filling jobs faster. It is building a staffing model that helps leaders understand demand, supplier performance, cost and compliance in one place.
That is especially important as workforce shortages vary by geography, specialty and market conditions. Health systems need workforce models that can adapt to labor realities, not just process staffing requests after pressure builds.

 For organizations managing multiple labor categories,<a href="https://www.crosscountry.com/workforce-solutions" rel="noopener noreferrer" target="_blank"> healthcare staffing solutions</a> can help connect staffing execution with broader workforce planning.

<h2>Talk to Cross Country About VMS and Staffing Optimization</h2>
A VMS system can help healthcare organizations bring more structure, visibility and accountability to contingent labor management. The stronger opportunity is using that foundation to improve how workforce decisions are made across the entire staffing ecosystem.
Cross Country helps healthcare organizations manage staffing complexity with the right mix of partnership, process discipline and workforce intelligence. Through Intellify, healthcare leaders gain stronger visibility into staffing activity, spend, vendor performance and workforce operations, helping teams make faster, more informed decisions.
A vendor management system should not be another layer of complexity. It should help teams see what is happening, act sooner and manage labor with more confidence.

 To learn how Cross Country can support VMS and staffing optimization, <a href="https://www.crosscountry.com/workforce-solutions-request" rel="noopener noreferrer" target="_blank">talk to Cross Country about VMS and staffing optimization.</a>

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