Vendor Management & Credentialing
Effective vendor management and credentialing are essential to workforce efficiency and flexibility.
Vendor Management Models
Organizations can use different models for vendor management. An organization may choose to manage vendors on their own, with or without the use of VMS technology, or it may choose to use a managed service provider (MSP), with or without a VMS.
The MSP functions as a vendor broker to evaluate if it can fill the staffing need; if not, it sends the need out to its channel partners. A VMS is a technology platform that automates and streamlines the management of the entire vendor supplier panel.
The most economical and scalable approach is self-management through a VMS.
VMS Benefits
A VMS empowers organizations to manage vendor relationships more efficiently, including:
- Efficiency — automating time-consuming tasks like document management and performance monitoring
- Compliance — tracking credentials, certifications, and licenses automatically
- Analytics — data on vendor performance, costs, and compliance
- Cost savings — better pricing negotiations and vendor consolidation
- Improved quality — monitoring vendor performance and quality
A VMS benefits vendors too — staffing agencies have an equal chance to fill opportunities and travel nurses can more easily see available jobs.
VMS Best Practices
Key best practices include:
- Make contractual terms clear, including service-level agreements
- Monitor performance regularly
- Address risk management with contingency planning
- Ensure regulatory compliance (HIPAA, HITECH)
- Promote effective communication with vendors
- Maintain and periodically review a vendor portfolio
- Train staff on vendor management policies
Documentation
Documentation related to all aspects of the vendor management process should be streamlined into one central system. Key onboarding steps include:
- Verify licenses and certifications — valid license and additional certifications required
- Conduct a background check — no criminal history, malpractice claims, or disciplinary actions
- Check references and employment history
- Verify immunizations
- Provide orientation and training
Vendor Credentialing
Every service that interacts with patients — directly or indirectly — requires vetting. Vendor credentialing confirms that workforce members meet required standards and regulations.
Benefits include:
- Improved quality of care and patient outcomes
- Safeguarding patient safety — including data protection and confidentiality
- Compliance adherence — well-maintained records for regulatory audits
Credentialing Process Best Practices
- Enact a clear and comprehensive credentialing policy
- Require vendor registration
- Collect documentation (liability insurance, business licenses, professional certifications)
- Conduct ongoing monitoring
Technology makes credentialing more efficient through online platforms, system integration, and real-time monitoring of vendor compliance.
AI in Vendor Management and Credentialing
AI is extending what's possible in vendor management:
- Automated credentialing verification — AI can continuously monitor license databases, flag expirations before they lapse, and cross-reference credentials against job requirements in real time — replacing manual periodic reviews
- Predictive vendor demand planning — By analyzing historical staffing patterns, census trends, and internal fill rates, AI can predict when external labor will be needed weeks in advance, giving vendors more lead time to source qualified candidates
- Vendor performance scoring — AI can aggregate fill rates, time-to-fill, credential compliance rates, and assignment completion data across vendors, automatically ranking performance and informing future allocation decisions
- Intelligent vendor distribution — Rather than distributing open assignments to all vendors equally, AI can route requests to the vendors most likely to fill them quickly and at the best rate, based on historical performance by specialty and geography