Implementing an MSP in Healthcare: Steps, Pitfalls, and How to Do It Right

As the demands on the healthcare workforce continue to grow, many healthcare organizations are turning to managed service providers (MSPs) to streamline staffing, reduce operational burdens, and improve quality patient care. But while the decision to partner with an MSP may be clear, the actual implementation process can feel overwhelming—especially for already-stretched clinical and HR leaders.

This article is built for teams who are evaluating, planning, or actively implementing an MSP for healthcare facilities. We’ll walk through what’s involved, where things often go wrong, and how to roll out an MSP program that truly supports your core mission: delivering safe, timely, and high-quality care.

What Is MSP Implementation in Healthcare?

MSP implementation is the process of transitioning your staffing process to a managed service provider solution. This partner takes on the end-to-end management of your contingent staffing, including:

• Candidate sourcing and vendor coordination
• Scheduling and shift fulfillment
• Credentialing and regulatory compliance
• Billing, bill rates, and consolidated invoicing
• Analytics and performance reporting
• Transitioning existing temporary staff into the new model

For many healthcare facilities, the implementation phase is where the value of an MSP begins—or stalls.

Common Pitfalls That Derail MSP Rollouts

Even the most advanced managed services model can fall short if implementation isn’t handled with care. Here are the most common pain points:

• Siloed departments that resist standardization of staffing workflows
• Lack of clarity around vendor expectations and support services
• Friction between current staffing agencies and the new MSP structure
• Delays in credentialing or healthcare VMS setup
• No clear point person internally to lead the transition

A Step-by-Step Look at MSP Implementation

Successful MSP implementation generally includes the following phases:

1. Internal Discovery & Needs Assessment

Identify current pain points in your staffing processes, including fill rates, compliance gaps, and fragmented reporting. Involve stakeholders from HR, clinical ops, finance, and compliance teams.

2. Stakeholder Alignment & Communication

Secure buy-in across all healthcare divisions and set expectations early. The best implementations come from shared goals, not top-down directives.

3. Technology Setup (VMS & Integrations)

Whether using the MSP’s vendor management system or integrating your own, map out how data will flow across systems. Focus on workforce visibility, usage tracking, and performance indicators.

4. Provider and Vendor Transition

Ensure smooth onboarding of existing temporary staff like locum providers, communicate with legacy vendors, and track credentialing milestones in real-time.

5. Go-Live & Optimization

Monitor early success markers (like shift fulfillment, cost containment, and workforce efficiency) and adjust workflows as needed. This is where a good MSP becomes a great one—proactive, responsive, and flexible.

Key Questions to Ask Before You Start

Not sure if your facility is ready to make the switch? Ask these before you launch:

• Do we have a clear internal owner for our healthcare MSP implementation?
• Are we aligned on what success looks like (fill rates, spend, recruitment process improvements, etc.)?
• Are we ready to consolidate vendor relationships or improve VMS solutions?
• Do we need support beyond tech like a partner with a deep understanding of our provider and patient needs?

Your MSP Should Fit Your Facility—Not the Other Way Around

The best healthcare managed service providers don’t just bring software—they bring insight, accountability, and adaptability. And the best implementations don’t just “launch,” they create lift.

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If your healthcare facility needs short- or long-term coverage, we can help. Reach out to a member of our team today.