Optimizing Locum Tenens Management: A Collaborative Approach to Workforce Efficiency



Executives at a major U.S. health system recognized the need to streamline its locum tenens and contingent labor management. The existing fragmented, self-managed, multi-vendor model wasn’t working. The goal was clear: implement a centralized, cost-effective solution that could simplify operations and strengthen recruitment efforts.
The health system turned to Trio Workforce Solutions and AHSA’s full-scope MSP services to achieve this goal. Powered by Trio VMS, AHSA provided the necessary structure to reduce costs, improve vendor neutrality, and drive recruitment efficiency.
Program Implementation Background
Prior to engaging with Trio Workforce Solutions and AHSA, the health system had no Managed Services Provider (MSP) or Vendor Management System in place, relying instead on multiple individual locum staffing agencies and internal resources dedicated to managing them effectively. This approach resulted in increased costs and operational inefficiencies, with internal staff struggling to manage various vendors.
Key drivers for program implementation included:
- The need for a simplified and vendor-neutral solution.
- Reducing reliance on single vendors by broadening the vendor panel to AHSA’s network of locums and physician staffing agencies.
- Creating a structured, competitive environment to enhance cost savings, recruitment efficiency, and quality of care.
Program Benefits
Since implementing AHSA’s program, the health system has experienced significant improvements:
- Cost Reduction: Contingent labor spend decreased from $7.04M in Q2 2024 to $5.7M in Q4 2024, demonstrating Trio Workforce Solutions and AHSA’s ability to drive cost efficiency.
- Operational Efficiency: Internal resources previously tasked with managing individual vendors in a fragmented manner were able to gain efficiency in their roles, freeing them up to focus on core recruitment activities instead of functioning as intermediaries between multiple staffing agencies.
- Better Cost Visibility: Non-AHSA program spend remains significantly more expensive per locum than within the Trio Workforce Solutions and AHSA program.
- Enhanced Market Access: Vendor neutrality enabled partnerships with multiple agencies, resulting in more competitive submissions and increased provider options.
- New Specialties Added: Expanded provider access to include Interventional Radiology, Pediatric Neurology, and Hepatology to better meet patient care demands.
Current Operations & Future Vision
Today, Trio and AHSA support the health system in managing nearly 2,000 providers across 11 markets in Ohio, Kentucky, Virginia, and South Carolina. To further enhance its workforce management practices, the system is exploring:
- Internal Resource Management (IRM): Implementing Trio’s proprietary IRM program to build and leverage an internal provider float pool.
- Direct Sourcing Strategies: Expanding direct sourcing efforts to enhance float pool capabilities and streamline recruitment.
- Joint Marketing Initiatives: Collaborating on marketing efforts to attract and retain local talent.
- Continuous Improvement Initiatives: Working closely with Trio to further centralize program spend, improve forecasting, and enhance provider utilization. Efforts include:
- Booking all travel at least 30 days in advance to optimize cost savings.
- Negotiating all-inclusive call rates to improve cost estimation and timekeeping.
- Cross-credentialing select providers to facilitate easier floating across facilities.
- Facilitating successful temp-to-perm transitions, converting contingent providers into permanent placements. Since the program’s inception, the health system is seeing early success in this area and is focused on expanding these efforts.
By implementing AHSA’s Managed Services, the health system has successfully reduced costs, improved operational efficiency, and positioned themselves for future growth through innovative workforce solutions.
With plans to integrate IRM, expand direct sourcing, enhance local talent engagement, and continuously refine program efficiencies, the partnership between AHSA and this leading health system continues to drive value and strategic advantage in physician staffing.
Interested in learning how Trio and AHSA can help your organization? Give us a call or fill out our contact us form.
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Connect With AHSA
Is your healthcare organization looking for similar results? Contact AHSA today to get started.
Connect With AHSA
Is your healthcare organization looking for similar results? Contact AHSA today to get started.