Check around-a higher and higher percentage of Companies using large amounts of temporary labor are now using MSP's and VMS's to manage that need through one source. This trend is now taking hold at Hospitals nationwide. The reasons for this are myriad. They include managing the high cost of benefits, cost-saving techniques and accountability. Simply put, the Client Facility is getting more for their temporary dollar. In many cases the MSP, through its VMS (Vendor Management Software) provides discounted hourly rates, volume discounts, Credentialing and Licensing, all payroll administration, HR compliance, unemployment benefits, tracking of all Temporary staffing activity, financial reporting, and complete management of the Temporary placement function. In addition, Employee Leasing has grown tremendously in our economy as Employers are looking to save on overhead costs. We expect the trend towards leasing to continue, and feel it is absolutely necessary that healthcare providers begin using Leasing as an alternative to Direct Hiring in today's market climate. As we all know, many Hospitals have shut their doors in recent years, not to mention U.S. Bankruptcies in general. In Queens , NY 5 hospitals have been forced to close in the last 3 years.

Why? One reason is high legacy costs for past employees, and the ever-rising cost of labor in general. These costs include; payroll, unions and benefits, to name a few. These high costs are combined with lower reimbursement rates from Medicaid, Medicare and private Insurers, thus putting an enormous financial stain on Healthcare providers, some of which are then forced to shut down. Do not allow this to happen to you. You must device a plan of action. It is simple math; lower reimbursements equal higher expenditures resulting in losses. You simply must change the way you are doing business if you are to survive in today's economy.