As healthcare staffing becomes more complex, technology has stepped in to help facilities manage growing networks of agency partners and contingent providers. One of the most important tools in this effort is a VMS, or Vendor Management System.

But what exactly is a VMS in healthcare—and how can it support a smarter, more efficient approach to staffing?

Whether you’re managing multiple vendors or just beginning to explore workforce platforms, this article breaks down the essentials: what a VMS does, how it works, and why it plays a key role in today’s healthcare staffing strategy.

What Is a VMS in Healthcare?

A Vendor Management System (VMS) is a software platform that centralizes how healthcare organizations manage their contingent workforce—typically contract, per diem, or locum tenens providers—and the staffing agencies that supply them.

Rather than coordinating through scattered emails and spreadsheets, a VMS brings everything into one place. From posting open shifts to reviewing submissions, tracking credentialing, approving time, and analyzing performance, the VMS acts as the operational backbone of modern contingent staffing.

Think of a VMS as the command center for vendor-based staffing. It gives healthcare teams the ability to coordinate multiple partners, maintain compliance, and make faster decisions—all from a single platform.

VMS vs. MSP: What’s the Difference?

A VMS is the technology. An MSP (Managed Service Provider) is the service layer that often uses that technology on your behalf.

In other words, while a VMS helps your team manage vendors more efficiently, an MSP can take that work off your plate entirely, handling coordination, communication, and strategy through a combination of services and software.

Many healthcare organizations use both: the MSP manages the staffing process, while the VMS powers the workflow behind it. But they’re not the same, and you don’t need an MSP to use a VMS.

What Does a Healthcare VMS Actually Do?

At a functional level, a healthcare VMS supports every stage of the contingent staffing lifecycle:

• Job posting across approved agencies
• Vendor communication and candidate submissions
• Credentialing tracking to ensure compliance
• Scheduling and onboarding workflows
• Time and attendance approvals
• Invoicing and billing management
• Reporting on usage, fill rates, and performance

This process often plays out across multiple specialties and staffing partners. The VMS helps ensure consistency so nothing falls through the cracks.

Why Use a VMS in Healthcare Staffing?

Healthcare leaders turn to VMS platforms for a few key reasons:

• Centralized control: Manage all staffing activity from one system
• Better visibility: Access real-time data on spend, vendor performance, and open roles
• Standardized workflows: Reduce variation in billing, credentialing, and compliance
• Faster fills: Speed up response times and reduce the risk of unfilled shifts
• Reduced administrative load: Automate repetitive tasks like timesheet collection and approvals

When used effectively, a VMS doesn’t just create order, it creates space for your team to focus on what matters most: delivering care.

Vendor-Neutral vs. Proprietary VMS Platforms

Some healthcare VMS solutions are built to be vendor-neutral, meaning they’re designed to work with any staffing agency, not just those tied to the platform provider.

This approach gives healthcare systems greater flexibility and control—but it also places more responsibility on internal teams or their MSP partner to maintain oversight. In contrast, proprietary VMS platforms may be tied to a single staffing vendor, offering a more curated but less flexible experience.

The right fit depends on your organization’s size, goals, and staffing complexity.

How a VMS Supports Long-Term Staffing Strategy

Beyond day-to-day operations, a VMS offers insight into the bigger picture of workforce planning.

Over time, usage data from the platform can help identify patterns, such as:

• Repeated gaps in specific specialties or units
• Seasonal demand surges
• Time-to-fill trends across vendor partners
• Budget alignment by department or facility

With this kind of intelligence, healthcare leaders can shift from reactive staffing to proactive planning, making smarter decisions that balance cost, quality, and continuity.

Choosing the Right VMS Partner

If you're considering a VMS, here are a few things to look for:

• Ease of integration with your existing systems
• Support for credentialing and compliance workflows
• Transparent reporting and analytics
• User-friendly interface for internal teams and vendors
• Dedicated support team or strategic service partner (if needed)

The best VMS is one your team will actually use, and one that supports your broader workforce goals.

Looking for a Simpler Staffing Strategy?

Even the best technology needs the right strategy behind it. Learn more about how Caliber supports healthcare leaders like you. Contact a member of our team today.