What Are VMS and MSP in Travel Nursing? A Simple Guide for Nurses
Hi Y’all! I’m Ronnie. Welcome to My Blog!
I’ve been a travel nurse recruiter for almost 5 years and a travel nurse for 4.5 years before that. Becoming a travel nurse was my dream job, and my journey has given me a unique perspective that few in this industry have. I’m here to help you navigate this wild world of travel nursing!
So, your recruiter keeps mentioning something called a VMS or MSP, and you’re sitting there wondering, what on earth does that mean? You’re not alone—many travel nurses, and even some recruiters, don’t fully understand these terms. Let’s break it down together.
What Is an MSP?
An MSP (Managed Service Provider) is a company that supports travel nursing agencies with their computer systems. Think of them as the tech support heroes behind the scenes.
Here’s what they do:
Ensure systems run smoothly and protect against data breaches.
Safeguard sensitive files and prevent data loss.
In the travel nursing world, MSPs take it a step further by managing relationships directly with hospitals and posting job openings for agencies to fill.
How It Affects You:
Agencies pay MSPs a fee, sometimes called a "VMS fee," which is deducted from the bill rate (the amount hospitals pay agencies). This fee ultimately impacts your pay package.
What Is a VMS?
A VMS (Vendor Management System) is an online platform that simplifies the hiring process for facilities. It’s like a digital hub for managing temporary staff.
Here’s how it works:
Facilities post their open positions on the VMS.
Agencies use the platform to submit candidates (that’s you!).
The VMS tracks hires, monitors spending, and manages metrics like hours worked and compliance.
How It Affects You:
Just like MSPs, VMS companies charge a fee—usually 3%-10% of the bill rate. This fee is also deducted before your agency calculates your pay.
Why Does This Matter?
Understanding MSPs and VMS fees is crucial because they directly impact your pay as a travel nurse. These fees are taken off the top of the bill rate (the hourly rate hospitals pay agencies) before the agency calculates your pay package.
For example:
If the bill rate is $100/hour, and the VMS fee is 5%, $5/hour is deducted.
The remaining $95/hour covers your pay, stipends, agency expenses, and recruiter commissions.
Quick Summary
MSP (Managed Service Provider): Ensures agency systems run smoothly and posts jobs for hospitals.
VMS (Vendor Management System): A digital platform for managing temporary staffing needs and expenses.
Fees: Both MSPs and VMS companies charge 3%-10% of the bill rate, which affects your earnings.
Why Should You Care?
Knowing about MSPs and VMS systems helps you understand how your pay package is calculated. If you notice a lower pay rate, you can ask your recruiter if high VMS/MSP fees are involved. Transparency is key in the travel nursing world!
That’s all for this post! If you have more questions about MSPs, VMS systems, or anything else related to travel nursing, let’s connect!
Happy Travels!
❤ Ronnie