Hospitals are facing a dual challenge: rising inpatient volumes and escalating labor costs. Traditional staffing agency models—marked by 30–50% markups, fragmented scheduling systems, and limited control over quality—are no longer sustainable. To remain financially resilient, healthcare leaders must rethink how flexible labor is sourced, managed, and financed.
A more efficient model is emerging: hospital-owned, AI-supported contracted workforces. By leveraging existing scheduling platforms and credentialing tools, hospitals can manage both internal and external staff within a single system. AI-enabled labor management enhances efficiency by auto-matching clinicians to shifts, forecasting labor costs in real time, and reducing reliance on costly agencies.
Partnering with a third-party payroll and compliance processor ensures administrative burdens—such as licensure verification, tax compliance, and W2 payroll—are handled seamlessly while hospitals retain control over workforce economics. Building a branded internal talent pool further strengthens recruiting power, drawing in flexible clinicians who may not have otherwise applied.
The result? Reduced costs, improved visibility, and stronger operational agility. With inpatient demand projected to grow 9–10% by 2035, health systems that adopt this proactive model will avoid overpaying for agency labor and instead reinvest in their own workforce stability.
The future of hospital staffing isn’t about fighting agency fees—it’s about replacing them with a more efficient, less expensive alternative.
This series of infographics guides hospital leaders through the process of building their own efficient & inexpensive internal contracted workforce:
Eliminate 30–50% agency markups while maintaining access to flexible labor
Leverage AI-driven forecasting to match staffing supply with patient demand
Gain cost transparency through direct-pay labor management
Reduce onboarding time with credentialed, pre-cleared contractors
Retain control while outsourcing payroll and compliance risk to trusted processors
Reinvest savings into permanent pipelines and staff retention programs
Improve visibility into labor cost per inpatient day with real-time analytics
