How One Health System Saved $170 Million and Empowered Its Workforce
A large, academically based health system in the Southeast, with 11 hospitals and over 580 provider locations, desired greater control over its contingent workforce. Faced with intense market competition and rising vacancies, the organization sought a partner to provide the technology and expertise to efficiently meet patient care demands and build a sustainable talent strategy.
The Challenge
Before partnering with AMN Healthcare in 2019, the health system faced significant operational hurdles. With no centralized Managed Services Program (MSP) program, a single person managed up to 200 contractors, leaving the organization with limited visibility into labor usage and costs. The lack of analytics infrastructure made strategic planning difficult, while increasing vacancies created instability. The system needed a way to empower its leaders with the tools to take charge of its workforce strategy.
The Solution
AMN Healthcare partnered with the health system to implement a solution focused on efficiency and control. We launched a system-wide MSP program for all 11 hospitals and over 250 clinics to centralize contingent labor management. A custom analytics dashboard within our WorkWise technology provided clear visibility into staffing trends and costs.
To build a more stable workforce, our Recruitment Solutions (RPO) team focused on permanent hiring, while a new radius rule prioritized local clinicians for internal roles. We also established an international recruitment pipeline for a sustainable source of future talent.
The Results
The partnership empowered the organization to align its strategic goals with innovative technology and expert guidance. By taking greater control of its workforce operations, the health system realized significant, measurable improvements, including:
- Saved over $170 million annually, with an 82% decrease in agency spend.
- Reduced external travelers by 75%, from roughly 1,000 to under 250.
- Strengthened workforce stability by hiring over 500 permanent nurses and converting more than 200 clinicians to permanent staff.
- Maintained high clinician quality, with a 95% assignment retention rate and 92% of clinicians exceeding performance expectations.
This partnership demonstrates that with the right strategy and technology, healthcare organizations can optimize resource allocation, achieve meaningful cost efficiencies, and build a sustainable future of care.
