Healthcare organizations are facing unprecedented workforce pressure. Nursing shortages, physician burnout, fluctuating patient volumes, and increasing regulatory complexity have made contingent labor a strategic necessity - not a temporary fix. This article examines the challenges of contingent staffing and how a vendor management system (VMS) can help.
Travel nurses, per diem clinicians, allied health professionals, and contract specialists now make up a significant portion of hospital and health system staffing models. But managing a healthcare contingent workforce without the right technology often creates more complexity than clarity.
This is where a Healthcare Vendor Management System (VMS) becomes critical.
Contingent labor provides healthcare organizations with agility in an unpredictable environment. From seasonal surges to public health emergencies, staffing flexibility is directly tied to patient care continuity.
Healthcare organizations rely on contingent workers to:
Hospitals must scale quickly during census spikes, flu seasons, and unexpected absences. Contingent workers allow facilities to adjust workforce levels without long-term fixed labor costs.
Shift-based environments require real-time coordination. Per diem nurses, float pools, and contract staff help prevent unit closures and patient diversion caused by staffing gaps.
Contingent clinicians often bring experience from multiple health systems, introducing best practices and specialized clinical expertise that enhance care delivery.
Strategic use of contingent labor reduces overtime burden, protects morale, and supports long-term retention of permanent employees.
However, as contingent labor grows, so do the administrative and compliance challenges associated with managing it.
Without a structured contingent workforce program, healthcare organizations often struggle with:
Upholding the quality of care as new staff members join the team
Seamlessly integrating temporary staff with permanent teams
Identifying qualified and proficient contingent healthcare workers
Ensuring that contingent workers adhere to regulatory requirements
Fostering a sense of value and engagement among contingent workers within your organization
Fragmented staffing agency relationships
Limited visibility into bill rates and markups
Credential and license tracking risks
Manual shift scheduling and reconciliation
Compliance gaps tied to certifications and onboarding
Inconsistent onboarding across departments
Lack of real-time workforce analytics
Budget overruns and maverick spend
In many mid-market healthcare systems, contingent labor is managed through spreadsheets, email, and disconnected systems. This creates operational risk, financial leakage, and compliance exposure.
A healthcare-specific Vendor Management System addresses these challenges directly.
The most difficult challenge, however, is managing the administrative aspects of contingent workforce deployment, and implementing a contingent workforce program that gives your organization the visibility and control it needs to ensure workforce success.
A modern healthcare VMS centralizes, standardizes, and automates contingent workforce management across facilities and departments.
Here’s how:
Healthcare staffing is shift-driven - unlike many other industries.
A healthcare-focused VMS allows organizations to:
This improves speed-to-fill while maintaining governance and cost control.
For mid-market hospitals, this visibility alone can significantly improve operational efficiency.
Healthcare is one of the most regulated industries in North America. Every contingent clinician must meet strict licensing, certification, immunization, and training requirements.
A healthcare VMS helps organizations:
Automated credential tracking reduces compliance risk and protects patient safety - while minimizing administrative burden.
Healthcare organizations often struggle with limited visibility into contingent labor spend.
A VMS provides:
This enables healthcare leaders to understand total contingent workforce spend, control labor costs, and prevent overbilling.
For CFOs and procurement leaders, this level of transparency is transformative.
Healthcare organizations typically work with multiple staffing agencies. Without structured oversight, performance varies significantly.
A VMS enables:
This creates accountability and drives stronger agency partnerships.
One of the greatest advantages of a modern VMS is actionable workforce intelligence.
Healthcare leaders gain visibility into:
These insights allow workforce planning teams to forecast demand, identify systemic shortages, and optimize labor mix strategies.
Many legacy vendor management systems were not designed for the unique needs of healthcare - especially shift-based, per diem-driven environments.
Modern healthcare VMS platforms are built with:
Implementing a Vendor Management System is not just an operational improvement - it's a strategic workforce decision.
A VMS designed for Healthcare's unique needs helps organizations:
As contingent labor becomes a permanent component of healthcare workforce strategy, technology is no longer optional.
Contingent workers are not a temporary solution to healthcare staffing challenges — they are a structural part of modern workforce models.
However, without the right systems in place, contingent labor can introduce cost volatility, compliance risk, and operational inefficiencies.
A healthcare-focused Vendor Management System provides the structure, visibility, and control needed to transform contingent staffing from reactive crisis management into a strategic workforce advantage.
For healthcare leaders navigating staffing shortages, regulatory complexity, and financial pressure, investing in the right VMS is an investment in workforce resilience - and ultimately, in patient care.
A healthcare VMS is software that helps hospitals and health systems manage contingent labor such as travel nurses, per diem staff, and contract clinicians.
It centralizes shift management, credential tracking, vendor oversight, and labor cost visibility in one system.
Yes. As contingent labor grows, manual processes increase compliance risk and financial leakage. A VMS provides visibility and control without adding administrative burden.
Modern VMS platforms with open APIs integrate with HRIS, payroll, ERP, and timekeeping systems.
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.
Here’s why we're the right choice:
Whether you are looking to Switch your VMS, or just Getting Started, we are here to help. Contact Us for a Free No-Obligation Consultation, See how Easy Conexis is to use by taking a quick 2 minute Self-Guided Online Demo, or Book a Personal Demo Today!