Key Takeaways:
- Vendor-neutral VMS puts hospitals in full control of their staffing spend and vendor relationships.
- True neutrality means the hospital owns the VMS platform, not an MSP or staffing agency.
- MSPs can limit transparency and vendor competition, increasing costs and reducing control.
- Independent VMS drives cost savings, vendor fairness, and better quality candidates.
- Real-world cases show why hospitals must prioritize direct VMS ownership for contingent labor management.
A Vendor Neutral VMS is Not Owned by MSPs or Staffing Agencies
If you search “VMS vs MSP” today, most content comes from Managed Service Providers (MSPs) themselves, organizations that profit by controlling hospital contingent labor programs. hese sources blur lines between technology and management, confusing what “neutrality” means for a vendor neutral VMS.
This confusion has real consequences, as demonstrated by cases like University Hospital System’s reliance on Hallmark MSP operating the Einstein II VMS, a chain of control that can limit true hospital ownership and transparency. It shows that hospitals don’t just have to debate vendor neutrality in theory. In the real world, MSPs often end up controlling how hospitals manage their temporary labor.
Another example would be that AMN Healthcare purchased Medefis VMS back in 2014 leading to further consolidation of contingent workforce management tools and companies.
These situations with AMN and Hallmark MSPs prove this is happening now in major health systems. It makes clear why hospitals need to take back control with truly vendor-neutral VMS platforms.
The Simple Difference Between VMS and MSP
A Vendor Management System (VMS) is a software tool. The MSP is a service that uses that tool, sometimes to hospitals’ advantage, but often at the expense of transparency, control, and genuine neutrality in order to turn larger profits.
What Is a VMS (Vendor Management Software)
A VMS is purely software, a digital platform hospitals use to:
- Post open shifts or job requests
- Receive candidate submissions from agencies
- Handle credentialing and compliance
- Track rates and assignments
- Streamline billing and invoicing
Hospitals keep full control when they license and operate the VMS themselves. It sets pay and bill rates, controls agency participation, and owns the data and vendor relationships. This direct control is the foundation of true vendor neutrality. However, many platforms claiming neutrality today do not operate under this model.
For example, Medefis, widely marketed as a vendor-neutral VMS, is owned by AMN, one of the largest healthcare staffing agencies, a structure that introduces conflicts of interest and risks consolidating market control rather than preserving neutrality.
What Does the MSP Really Do for the Hospital
An MSP is a managed service stepping in as:
- The single point of order entry (all job requests flow through them)
- The central invoice processor (they handle payments)
- The vendor gatekeeper (they determine which agencies participate)
MSPs simplify workforce management but take control away from hospitals. The MSP becomes the de facto market controller, running the hospital’s labor ecosystem, not the hospital itself.
Why MSPs Are Not Neutral
MSPs’ financial incentives are not aligned with hospital interests. Since MSPs profit from the margin between hospital payments and agency earnings, they may:
- Favor preferred vendors through opaque back-channel deals
- Block new agency entrants, limiting vendor diversity
- Artificially restrict supply to protect their margins
As a result, hospitals receive reports that may obscure full market realities, impacting transparency over rates, fill speeds, and agency diversity.
True Neutrality Exists Only Under Hospital Control
Neutrality depends on who owns the system, not just how it works. A VMS is truly neutral only when operated directly by the hospital:
- The hospital leases the VMS itself
- The platform is independent from staffing agencies, MSPs, or private equity interests with conflicting incentives
- The hospital maintains direct contracts with all participating agencies
Under these conditions, hospitals reap the benefits of automation and analytics without giving up visibility or decision rights.
| Feature | Standalone VMS (Hospital-Controlled) | MSP-Controlled VMS | Hybrid MSP/VMS Model |
|---|---|---|---|
| Ownership | Licensed directly by hospital | Owned/operated by MSP | Co-managed between MSP & hospital |
| Neutrality |  True Neutral |  None |  Limited |
| Contract Control | Hospital signs MSAs directly with agencies | MSP signs or dictates vendor agreements | Shared or delegated |
| Rate Transparency | Full visibility | Filtered through MSP margin | Partial |
| Vendor Access | Open — hospital decides who participates | Restricted — MSP curates agency panel | Mixed |
| Invoice Management | Direct between hospital and agencies | Single invoice via MSP | Single invoice via MSP |
| Incentives | Compliance, cost control, data transparency | Margin retention, efficiency | Mixed |
Options for Vendor Neutral VMS
BlueSky Medical Staffing Software is a genuine standalone VMS, not owned by staffing agencies, MSPs, or investors with competing interests. Leading hospitals and health systems use BlueSky to:
- Run their own vendor networks
- Set transparent, fair rates
- Track vendor performance and compliance
- Consolidate invoicing directly
- Retain comprehensive market visibility
BlueSky empowers healthcare organizations to own their contingent labor strategies fully, avoiding the compromises of managed service middlemen or monopolistic vendor control.
The Future Belongs to Transparency
While MSPs have historically played a role in contingent staffing, the healthcare industry is shifting toward data-driven autonomy. Hospitals want greater control, fairness, and insight into their vendor landscapes, something only a truly vendor-neutral VMS under their ownership can deliver. Real vendor neutrality is not outsourcing control; it’s reclaiming ownership.
