Friday, November 20, 2009

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Hospital Acceptance of VMS and MSP Models Predicted to Continue Steady Growth Earlier this year the Staffing Industry Analysts (SIA) put out a report suggesting that 50% of buyers (hospitals and health systems) in the healthcare staffing industry now manage their agency usage through a VMS or MSP model. In an earlier blog post I discussed this in more detail and showed that more hospitals are choosing a vendor neutral VMS technology solution than they are an agency led MSP model. Yesterday, the SIA released another report suggesting that by 2011, 93% of healthcare buyers in the U.S. will be using a VMS or MSP. The numbers come from a survey they did of 171 healthcare buyers. The survey results also suggested that the breakdown of these accepted offerings will be: 55% MSP 42% VMS According to my estimates of hospitals using a VMS or MSP model, the 50% current adoption is probably pretty close to accurate. This adoption of VMS by hospitals is up 24% from last year according to the SIA. The SIA is partially basing their prediction of a jump to 93% in 2011 based on a similar growth pattern from the previous two years. However, I don't think this jump is accurate because I think there previous year (2008) estimate of 24% was much too low. Further, in terms of the number of hospitals, the vendor neutral VMS technology model has been much more widely accepted than agency MSP offerings. Therefore, I don't see how in two years the MSP model will overtake the VMS model by 13%....

Jason Lander

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