How to Choose the Best Vendor Management System for Healthcare (2026)

Healthcare organizations face rising cost pressure, compliance risk, and staffing volatility. Selecting the right VMS can directly impact operational efficiency and patient outcomes. In this article, we look at what key factors you should consider when choosing a Vendor Management Software for healthcare. 

What Is a Healthcare Vendor Management System?

A Healthcare Vendor Management System (VMS) is workforce management software that enables hospitals and healthcare systems to manage contingent labor across staffing agencies, departments, and facilities.

Unlike general procurement platforms, a healthcare VMS must support:

• Shift-based staffing models
• Per diem workforce management
• Float pool coordination
• Credential and license tracking
• Regulatory compliance workflows
• Real-time workforce analytics

In modern healthcare environments, a VMS is not just an administrative tool - it's a strategic workforce platform.

8 Critical Considerations When Choosing a Healthcare VMS

Here are 7 key considerations when choosing the best VMS for your Healthcare Organization: 

1. Purpose-Built for Healthcare

Many legacy VMS platforms were originally built for IT or professional services procurement and later adapted for healthcare.

Healthcare environments are fundamentally different.

When evaluating a VMS, ask:

• Does the system support shift-based workflows natively?
• Can it manage per diem and floating staff?
• Is it designed for unit-level visibility?
• Does it reflect clinical approval processes?

If the platform requires heavy customization just to support basic hospital staffing workflows, it may not be purpose-built for healthcare.

2. Regulatory Compliance & Credential Management

Healthcare is one of the most regulated industries.

Your VMS should support:

• Automated credential tracking
• License verification workflows
• Expiration alerts
• Immunization tracking
• Audit-ready documentation storage
• Configurable compliance rules

Systems that lack real-time compliance visibility expose organizations to accreditation and regulatory risk.

3. Vendor Performance & Rate Transparency

Not all staffing agencies perform equally.

Vendor performance measurement is a critical aspect of vendor management. The VMS should provide comprehensive reporting and analytics features that offer insights into vendor performance, helping to identify areas of improvement and make informed decisions. These metrics could include vendor response time, quality of services provided, pricing, and compliance with contractual obligations.

A healthcare VMS should provide:

• Fill-rate tracking
• Vendor response-time metrics
• Quality scorecards
• Standardized rate cards
• Markup visibility
• Department-level spend analytics

Without vendor performance data, organizations cannot optimize agency relationships or negotiate effectively.

4. Interoperability & Open API Architecture

Healthcare technology ecosystems are complex. Interoperability is crucial in healthcare, given the interconnected nature of various systems, like electronic health records (EHR), billing systems, and scheduling software. The VMS you choose should seamlessly integrate with existing systems to allow the effortless exchange of data.

This ensures consistency, eliminates duplication, and reduces the chances of error, promoting efficient workflow. Interoperability also enables better decision-making by providing a holistic view of the supply chain.

Your VMS must integrate seamlessly with:

• HRIS systems
• Payroll platforms
• ERP systems
• Time & attendance tools
• Scheduling software
• EHR systems (where appropriate)

Open APIs are critical. Closed, legacy architectures often create data silos that limit workforce visibility.

5. Workforce Analytics & Reporting

Modern healthcare leaders require real-time insights.

Look for:

• Spend dashboards by department
• Cost-per-shift reporting
• Fill-rate trends
• Overtime comparisons
• Internal vs agency utilization analysis
• Forecasting tools

Data-driven workforce planning is no longer optional.

6. Internal Resource Pool Optimization

One of the fastest ways to reduce agency spend is by optimizing internal float pools.

A strong healthcare VMS should allow you to:

• Prioritize internal staff before releasing shifts externally
• Track savings from internal utilization
• Manage credentialing for internal resource pools
• Monitor fill rates by workforce category

This functionality is especially important for mid-market health systems managing cost pressure.

7. Scalability, Support & Future-Proofing

Healthcare is constantly evolving.

Ask:

• Can the platform scale across multiple facilities?
• Does the provider offer ongoing support and training?
• Are system updates included?
• Is implementation measured in weeks or months?
• Does the vendor specialize in healthcare?

A VMS should grow with your organization — not require replacement in three years.

8. Ease of Use

The VMS's user interface should be intuitive and easy to navigate.

Complicated or non-user-friendly systems may discourage usage, reducing adoption and the effectiveness of the investment.

Ask:

•  Adaptability to mobile devices, as the increasing adoption of telemedicine and mobile healthcare services requires on-the-go accessibility.

• Proper training and support from the VMS provider can ensure smooth transition and adoption.

• Existing customer feedback, and Net Promoter Score (how likely is a user to recommend the system).  The best VMS is the one that real users recommend. 

Legacy VMS vs Modern Healthcare VMS

Understanding the difference between traditional and modern platforms is critical.

Healthcare organizations should evaluate whether a platform was truly designed for clinical staffing - or adapted later.

Signs Your Healthcare Organization Has Outgrown Its Current VMS

• Limited visibility into contingent labor spend
• Manual credential tracking
• Slow vendor response times
• Inconsistent fill rates
• Poor integration with HR/payroll systems
• Difficulty managing shift-based staffing
• Lack of real-time analytics

If these challenges exist, it may be time to evaluate modern healthcare VMS options.

Final Thoughts

Choosing the best healthcare Vendor Management System is not just a technology decision - it's a workforce strategy decision.

As contingent labor becomes a structural component of healthcare staffing models, organizations need visibility, compliance safeguards, and cost control mechanisms built specifically for clinical environments.

A modern, healthcare-focused VMS can transform contingent workforce management from a reactive process into a strategic advantage.

Frequently Asked Questions About Choosing a Healthcare VMS

What is the best VMS for healthcare?

The best healthcare VMS is one built specifically for shift-based staffing environments, with strong compliance tracking, vendor performance metrics, and open integration capabilities.

Do mid-market hospitals need a VMS?

Yes. As contingent labor grows, manual processes increase compliance risk and financial leakage. A VMS provides visibility and control.

How long does it take to implement a healthcare VMS?

Modern platforms can be deployed in weeks, while legacy systems may take months depending on complexity.

Can a VMS reduce travel nurse costs?

Yes. By providing rate transparency, internal resource pooling, and vendor performance tracking, organizations can reduce unnecessary agency spend.

Additional Reading on VMS Software for Healthcare

• VMS for Healthcare: What you need to know
• Hospitals & Healthcare: How a VMS helps you manage a Contingent Workforce
• 5 Benefits of a Vendor Management System for Healthcare
• 5 Must-Have Features when choosing a VMS for Healthcare
• How to Choose the Best VMS for Healthcare
• 7 Ways a VMS helps address Healthcare Staffing Shortages
• 6 Ways a VMS helps you manage shift-based workers
• Legacy vs Modern VMS: What's the Difference?

Conexis VMS: Built for the Healthcare Industry

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

1 - Purpose-Built for Shift-Based and Per Diem Workforce Management

Conexis VMS supports:

• Open shift management
• Department-level shift visibility
• Per diem billing workflows
• Floating staff across units
• Structured internal-first release rules

This is critical for hospitals, long-term care facilities, and regional health systems managing fluctuating patient volumes.

2 - Internal Resource Pooling to Reduce Agency Spend

Our resource pooling functionality allows you to:

• Build and manage internal float pools
• Automatically prioritize internal staff
• Track cost savings from internal utilization
• Maintain agility without overspending on agencies

For mid-market healthcare systems, controlling agency spend can deliver immediate financial impact.

3 - Healthcare-Focused Compliance Controls

Conexis VMS enables:

• Automated credential tracking
• Expiration alerts
• Real-time compliance flags
• Audit-ready documentation storage
• Configurable do-not-rehire tools

This protects your organization during accreditation reviews and regulatory audits.

4 - Open API and Modern Tech Stack

Unlike legacy VMS platforms, Conexis VMS is built on a modern architecture with open APIs, allowing integration with:

• HRIS systems
• Payroll platforms
• Scheduling tools
• ERP systems
• Time and attendance systems

Additional Resources - Free Guide

Download our free Buyers Guide to learn more about a VMS

About Conexis 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.

Why Leading Companies Choose Conexis VMS

Here’s why we're the right choice:

• Fast Deployment: Get up and running in weeks, not months
• Transparent Pricing: Flexible pricing with no hidden costs
• White-Label Ready: Customize the platform with your brand
• Real-Time Insights: Make faster decisions with built-in analytics
• Audit-Ready Compliance: Store contracts, worker data, and rates in one secure hub

Looking to Switch Your VMS or Just Getting Started?

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!