What Is a Healthcare Vendor Management System, and How Does It Work?

Last Updated on October 6, 2023

Healthcare professional holding stethoscope with medical graphic logos

Every leader knows there’s a lot to manage in any facility that provides patient care. From basic administrative tasks to IT needs to employee management like payroll, billing, and scheduling, there’s a wide range of different tasks that need to be carried out in a timely, efficient way, every single day. And for many organizations, this is only possible with the help of a healthcare vendor management system.

Using vendors is often a sheer necessity for many organizations. But managing all these vendors can be a job in and of itself. With a healthcare vendor management system, or VMS, as it’s usually called, leaders get to see and control each vendor from a single, centralized point. The result is assurance that every task is being performed at its highest level possible, and ideally at the lowest price point.

If you’re interested in a new solution for improving your organization’s day-to-day efficiency, here’s what you should know about healthcare vendor management systems (VMS).  

How Does a Healthcare Vendor Management System Work?

A healthcare vendor management system works as a single partner to manage your interactions with any third-party vendors from one centralized hub. Providing single line-item oversight for all the different tasks sourced to vendors, VMS also helps facilities take advantage of automation to better measure performance and detect any potential unwanted trends at the earliest possible time.

And when it comes to choosing a healthcare VMS, the market offers many options. Some offer the technology to manage vendors, while others take a more hands-on approach. Some are able to offer full-service partnership — not just the technology and system framework, but also continuous guidance in its active management towards a specific performance goal, such as cost containment

VMS isn’t quite the same as healthcare managed services (MSP), in which the partner actually tackles all the needed vendor roles, as well. A VMS will give you the means to manage vendors, and ideally provide you with a technology-neutral means of doing so, to make life as simple as possible. But you’re still in charge of the vendors and the tech, and the costs associated with their active management.

5 Ways a Healthcare Vendor Management System Can Help Your Facility

1. Drive efficiency and cut costs.

First and foremost, a VMS can help facilities cut costs by improving operational efficiency. Managing each task to its fullest potential means coming closer to functioning at top capacity. And that can make a crucial difference, especially in competitive markets. Whether it’s monitoring electrical usage or better handling billing and invoicing, VMS helps you track the cost and performance of every task.

2. access to important resources.

The growing use of contingency workers like travel nurses in recent years has helped ease the staffing crisis. But it’s also made managing vendors more complex than ever. A healthcare VMS can help ease the process (and its costs). Partnering with a VMS that offers a variety of workforce solutions could also give you access to more workers, as well as the security of a partner who can offer a host of other workforce solutions.

3. The latest and greatest technology and expertise.

Healthcare VMS can also help make sure you’re using the best possible system or technology for each task. This is helpful in any business, but particularly in healthcare. Many organizations still struggle with the use of electronic health records (EHR). A healthcare VMS can help relieve that burden with the management and implementation of easy-to-use, state-of-the-art technology, and best practices.

4. The right tool for every job.

Partnering with a VMS that takes a technology-neutral approach to vendor management also helps to make sure that the technology being used is always the right one for the job, not a legacy partner or unnoticed poor performer. A VMS can help make sure that all the processes and personnel are tested and proven — both of which are necessities when it comes to important issues like digital security.

5. Better insights to fuel continuous improvement.

With this kind of tracking in place, an organization-wide VMS solution can provide important insights into trends that you may not currently notice. Monitoring and tracking key data means having a better understanding of clinical as well as business factors. That leads not just to efficiency, but also to compliance and a better shot at meeting targets related to value-based care reimbursement.

Looking for Some Help with Healthcare Vendor Management?

Looking for some help or guidance with vendor management? CareerStaff Unlimited offers customizable VMS services to help with scheduling, billing, invoicing, and much more. We’re a Joint Commission-Certified company, offering a full suite of workforce management solutions like nurse and clinical staffing and recruitment, crisis response, and healthcare managed services.

Discover how we can help you meet your vendor management needs — contact us today or request a consultation now.

Contact CareerStaff