The North American healthcare system is facing a sustained staffing crisis. What began as a structural shortage driven by demographics has evolved into a workforce volatility challenge intensified by burnout, retirements, and increased patient acuity. In this article, we look at ways to address this through contingent workforce planning and how a vendor management system (VMS) can help.
According to the American Association of Medical Colleges (AAMC), the U.S. could face a physician shortage of up to 139,000 by 2033. Canada faces similar pressures, with tens of thousands of projected physician openings over the next decade. In fact, a recent report by the Government of Canada Employment and Social Development expects that there will be about 78,700 physician job openings over the 2022-2031 period.
For hospitals, health systems, long-term care facilities, and specialty clinics, the question is no longer whether to use contingent labor - it’s how to manage it strategically.
A modern Vendor Management System (VMS) is no longer a back-office procurement tool. In healthcare, it becomes a workforce resilience platform.
Several structural forces are converging:
1. Aging Population
By 2034, Americans over 65 will outnumber those under 18. Canada projects one in four citizens will be over 65 by 2031. More patients means higher demand for physicians, nurses, allied health professionals, and support staff. (Sources: US Census and Statistics Canada)
2. Aging Clinical Workforce
A significant portion of nurses and physicians are approaching retirement age. As they exit the workforce, institutional knowledge leaves with them.
3. Burnout and Attrition
Pandemic-era stress accelerated career changes, early retirements, and reduced full-time participation. Many clinicians now prefer flexible, shift-based, or per diem arrangements.
4. Shift-Based Complexity
Healthcare isn’t a 9-to-5 industry. It requires 24/7 staffing across departments with varying acuity levels. Manual coordination simply cannot keep up.
The result: higher agency spend, overtime costs, compliance risk, and declining morale.
A healthcare-focused VMS does more than manage vendors — it improves fill rates, reduces cost leakage, and increases workforce agility.
Here are specific ways a VMS directly mitigates staffing shortages:
When shifts are managed through email chains and spreadsheets, response times lag.
A VMS centralizes all staffing agencies and independent contractors in one platform, enabling:
This reduces vacancy time, improves fill rates, and ensures patient care continuity.
One of the biggest drivers of excess healthcare labor costs is underutilized internal talent.
With a VMS:
This structured “internal-first” model can significantly reduce premium agency spend while improving employee engagement.
Healthcare contingent workforce programs require:
A healthcare-ready VMS supports structured shift-based workflows rather than generic requisition models. This allows:
In healthcare, compliance failures directly impact accreditation and patient safety.
A VMS centralizes:
Automated compliance flags prevent non-credentialed workers from being assigned to shifts. This protects organizations during audits and regulatory reviews.
Healthcare organizations must protect patients and staff from high-risk re-engagement.
A VMS enables:
Without a centralized system, risk information is fragmented - and that creates liability exposure.
Many healthcare systems would benefit from knowing:
A VMS delivers dashboards that allow finance, HR, and clinical leadership to:
Visibility is the foundation of strategic workforce planning.
Beyond daily scheduling, a VMS provides trend analytics:
This data allows healthcare leaders to transition from reactive staffing to proactive workforce strategy.
The healthcare staffing shortage is not a temporary disruption - it is a structural workforce evolution. Healthcare organizations must embrace more flexible workforce models while maintaining compliance, financial control, and patient safety.
A modern Vendor Management System transforms contingent workforce management from a reactive necessity into a strategic advantage.
For healthcare organizations navigating staffing volatility, rising agency costs, and increasing regulatory pressure, the right VMS is no longer optional.
Not all VMS platforms are designed for clinical environments. Many were built for IT or professional services procurement and later adapted for healthcare.
Conexis VMS was built with shift-based, contingent-heavy industries in mind. The Healthcare sector demands specialized tools to effectively manage its contingent workforce.
We stand out with our tailored VMS functionality designed to meet the unique needs of the healthcare industry. From resource pooling to job assignments, managing work shifts, and handling per diem billing. Conexis makes the process of sourcing, managing, and compensating both clinical and non-clinical staff members easier; making it a valuable asset for healthcare organizations. Read more at Conexis VMS for Healthcare
Conexis VMS supports:
This is critical for hospitals, long-term care facilities, and regional health systems managing fluctuating patient volumes.
Our resource pooling functionality allows you to:
For mid-market healthcare systems, controlling agency spend can deliver immediate financial impact.
Conexis VMS enables:
This protects your organization during accreditation reviews and regulatory audits.
Unlike legacy VMS platforms, Conexis VMS is built on a modern architecture with open APIs, allowing integration with:
Download our free Buyers Guide to learn more about a VMS
Conexis is an award-winning vendor management system built for organizations that want the power of enterprise software without the complexity or cost.
Leveraging the latest technology, Conexis delivers the expertise, reliability and security of enterprise systems, while offering the flexibility, user friendliness and tailored, personal service you require. Learn more about our Company and why organizations Choose Conexis VMS.
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