Maximizing Cost Savings: The Benefits of Direct Sourcing Contingent Labor for Hospitals

Health systems across the country continue to suffer from chronic staffing deficits which heavily stretch hospital resources. Facilities in rural and urban regions have had to rely on the contingent workforce to fill vacancies throughout their health systems.While contingent workers have been able to fill vital roles, the price of that labor has come at a high cost to facilities, many of which saw their operating costs triple as a result of dependence on such workforce. Many health systems have had no option but to secure travelers, regardless of the rising costs and limited transparency into market rates. While effective in filling vacancies, traditional staffing methods have yet to prove cost-efficient for hospitals. This factor alone has led to hospitals being tasked with finding creative and more cost-effective ways to staff their facilities.

HWL understood the struggle health systems were experiencing from the rising costs associated with staffing contingent labor. Realizing that the traditional staffing method was not sustainable for these organizations, HWL’s innovative and knowledgeable leaders created a solution. HWL’s Private Label Solution helps hospitals to direct source their contingent labor by leveraging the health system’s brand, market intelligence, and commitment to career development. By leveraging proprietary technology, a third-party employer of record (EOR) and through a partnership with the largest online marketplace for traveling healthcare professionals, HWL created a solution that meets staffing demands, but at a substantially lower cost. While many health systems have created their own internal agency in the past with limited success, HWL recognized that a partnership model is more effective and allows the health system to benefit from a proven turnkey solution that requires no financial investment. By allowing the experts at HWL to build and manage the internal agency, the health system receives the benefit of 10-20% savings without having to hire staff to manage the program. The results have been impressive and now other health systems are catching on.

One such health system is Northside Hospital, located in Atlanta, Georgia. Northside is one of the many hospitals partnered with HWL to implement the Private Label solution. Seeking alternatives to their traditional staffing method and relief from the heavy burden of costs associated with staffing their facilities with contingent labor to fill vacancies, Northside reached out to HWL. The health system partnered with HWL to create a branded agency, ChoicePlus Travel, which would act as a funnel for contingent workers to apply directly through a quick online application on a branded landing page. At the back end, HWL provides Northside with access to proprietary technology that allows Northside to see what contingent staff rates are in the same region for similar contracts. This allows Northside and other hospitals to set competitive rates for workers while reducing the costs associated with sourcing and procuring the workers. The transparency granted to the contingent worker, the hospitals, and hospitals can drive down market rates with the knowledge gained from the HWL tool. As of July 2023, Northside has experienced cost savings of 19% compared to the traditional staffing method used to staff its hospitals with nursing and allied professionals.

Like Northside, Lee Health, with locations primarily in Cape Coral and Fort Myers, Florida, was experiencing the same pressure to find more innovative ways to source their contingent labor and gain transparency into what nurses were being compensated versus the rates presented to Lee to contract a contingent worker. TraveLee Health Staffing, Lee Health’s branded private label agency, was created to drive candidates to Lee Health to be then screened and onboarded to fill vacancies at the various Lee Health facilities by HWL. Candidates can access a ‘Quick Apply’ form on the agency landing page that connects them immediately to a representative to learn more about the contract. The Travelers can be confident that the rates they receive are the most competitive and other benefits like that of traditional staffing agencies through the third party EOR. Since implementing TraveLee Health Staffing, Lee Health has saved 19% on contingent labor staffing costs.

Not only are these organizations saving money on staffing contingent labor for their facilities, but they are also gaining vital insight into market rates through HWL’s technology to competitive rates then and drive down rates to meet their organization’s budget needs. There is no sacrifice in the quality of candidates, and the agency is created with the existing brand so that it is recognizable. Streamlining this process with the help of HWL’s experts and support team members provides viable alternatives for hospitals that rely on contingent labor to support their staffing needs and provide seamless patient care.

To learn more about how HWL’s workforce experts, proprietary technology, and full-service support team can implement and support a branded agency for your organization, connect with one of HWL’s representatives today!

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