Monday, October 19, 2009

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The Most Important Question to Ask Your VMS/MSP Provider It's becoming all too common of a story. VMS technology companies seem to be folding left and right and when they do, they go out holding millions of unpaid dollars to staffing suppliers. First there was Chimes. In early 2008, Chimes declared bankruptcy and went out owing millions of dollars to staffing suppliers. To make matters worse, a year or so later their legal trustee attempted to reclaim some of the money paid out to suppliers after their declaration of bankruptcy, claiming this money should have been frozen at the date of declaration. Earlier this year, another small VMS company in the healthcare staffing industry, Vendtegrity, went out of business. At the time, Vendtegrity had only 4 clients so the impact was minimal. However, to the suppliers owed money, I'm sure it didn't feel minimal. Last week, on behalf of several heatlchare staffing suppliers, the National Association of Travel Healthcare Organizations (NATHO) sent a letter to Symbio Solutions because of their inability to distribute funds owed to these companies. The Staffing Industry Analysts posted more details about the bad payment situation between Symbio and NATHO. In the letter, NATHO states "In the past several years, several vendor management providers have defaulted on their obligations to their staffing agencies. When this occurs it creates financial hardships for those agencies who have provided the staffing services to facility clients in good faith, and also puts such clients in the position of having to possibly make restitution to the agencies on behalf of...

Jason Lander

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