‘Free’ Float Pool Management. Turns out, you might get what you pay for.
Facing ongoing provider shortages, U.S. health systems leverage locum tenens providers to fill the gaps, without oversight or control of the expense associated. While this approach addresses understaffing and ensures patient care, managing costs of locum programs is a challenge for many organizations.
Internal locum tenens programs – float pools – are one strategy health systems can leverage to more economically bridge staffing gaps and decrease staff physician burnout. With float pools, health systems take responsibility for recruiting, scheduling, and managing internal locum providers directly, thereby reducing their agency spend.
Health systems look to float pool management solutions like Syncx Float Pool to streamline these processes and scale their internal locum programs. Hospitals such as the University of Pittsburgh Medical Center (UPMC), leverage Syncx Float Pool to grow their internal locum tenens programs, decrease external locums utilization, and lower overall costs.
The illusion of ‘free’ float pool management.
As one of the first providers of internal locum tenens management services, Syncx has seen new entrants to the space offering ‘free’ float pool management. It is important to look below the surface to understand the true implications of such offers. Companies might offer the service for free because they are new to float pool management and need to gain experience, meaning you become their test subject. Or, they might use free offerings as a loss leader to attract clients, intending intend to make money elsewhere. The catch? Free isn’t always free.
Free float pool management frequently comes with hidden costs and misaligned objectives. Take, for example, a staffing agency-owned managed service provider (MSP). They might offer free float pool services to grow the number of locum tenens providers placed through their agency, ultimately growing revenues.
This creates a fundamental conflict: the service provider lacks the incentive to help you build your internal float pool and cut external locum costs. Instead, they will focus on where they can get a return, placing more locum tenens providers.
The real costs of ‘free.’
Building and managing a float pool is an investment, some of the costs associated include:
- Time Investment: Free services may lack dedicated resources. Your in-house staff could end up shouldering much of the workload, diverting their attention from other critical tasks. Will the free offering include a dedicated expert to help your team?
- Financial Considerations: Paying float pool providers each week comes at a cost: payment servicing, bank fees, and the time value of money. Syncx administers the payment of float pool providers and then carries that expense while invoices are being processed and paid.
- Operational Challenges: Who is responsible for credentialing, payroll, technology costs, recruitment, and onboarding? How will those costs be covered? These are important questions to ask when you are interviewing potential partners.
Quality and reliability concerns.
There is a difference between Float Pool technology and a Float Pool management partner. However, even the technology comes at a cost. Determine which your organization can support and consider the consequences of an undersupported program.
The long-term ramifications can be significant: your float pool may fail to grow, “die on the vine,” and you’ll find yourself back where you started – with high locums spend and an inefficient staffing model.
Questions to ask float pool management service providers.
If you’re considering a float pool management service provider, be prepared to ask them the following questions:
Credentialing
- Who handles float pool provider credentialing, including application management, paperwork, reference collection, and verification?
Payroll and Financial Management
- Who manages payroll (not to be confused with time collection)?
- Who handles direct deposit enrollment, IC agreements, and 1099 processing?
- How do you manage payroll expenses and interest costs before billing occurs?
Technology Access
- Are there licensing fees for providers and facility users? If so, how are those fees structured?
Recruitment and Onboarding
- Do you help recruit and onboard float pool providers? If so, how?
- Do you assist with training new providers and integrating them into the system?
Cost Structure and Incentives
- What is your detailed cost structure?
- Are our goals aligned (e.g., cost reduction through float pool growth)?
Long-term Sustainability
- How will you sustain the float pool program without additional fees?
- Are there any plans for future cost structure changes?
Service and Support
- What level of ongoing service and support do you provide to manage the float pool?
The Syncx float pool approach.
At Syncx, our goals are aligned with those of our clients. Our team is incentivized as your float pool grows and you save money, ensuring mutual investment in your long-term success.
Our comprehensive service includes all aspects of float pool management – from recruitment and credentialing to payroll management and technology solutions. Our experts have deep industry knowledge and years of successful implementations, enabling them to build a sturdy foundation for your float pool that won’t collapse under pressure.
Remember, you get what you pay for. It’s crucial to look beyond the initial cost savings before you take the bait. Effective float pool management requires expertise, resources, and aligned incentives. With an experienced partner, you’re investing in the long-term success of your staffing model and your organization.
Spend on the things that matter most.
Syncx splurge advice: Spend on the things that matter to you and your organization, and negotiate to spend less on the rest. Want guidance for making the the right choices that align with your systems and goals? Book a complimentary 15-minute call with a Syncx customer solutions specialist to learn more about float pool management.
