Before You Add Another Locums Vendor, Ask What Your Current Program Can Tell You

A coverage problem is not always a supplier problem

When physician or APP coverage starts to feel fragile, the reflex is understandable: add another agency and create more recruiting capacity. But before expanding the supplier panel, there is a more important question to answer: Do you know why the current model is underperforming?

A vacancy may look like a sourcing problem when the real issue is buried somewhere else: inconsistent rates, slow credentialing, fragmented demand, poor supplier performance, avoidable external utilization, or simply a lack of data connecting all of it.

Adding supply before diagnosing the system can increase activity without improving the outcome.

Before you add supply, diagnose demand

The number of agencies in a program is not, by itself, a measure of strength. A broad supplier panel can be valuable when every partner has a purpose, performance is visible, and the organization retains control over how work is distributed. The problem begins when new vendors are added without understanding what is driving the gap.

Before adding another agency, leaders should be able to answer a few basic questions: Where is contingent demand coming from? Which specialties, facilities and shifts are driving spend? Are internal, PRN or other lower-cost resources being fully utilized first? Which suppliers consistently deliver quality clinicians at competitive rates? Where are time and money being lost in the process?

The questions a mature program should be able to answer

• Can you see demand before it becomes spend? Visibility should go beyond invoices. Leaders need to understand where demand originates, what is driving external utilization, how rates vary, and whether the right resource is being deployed before a requisition becomes another expensive habit.
• Can you distinguish activity from performance? More submissions do not necessarily mean better coverage. Fill rate, time to fill, rate discipline, credentialing performance, quality and responsiveness should make it clear which partners are creating value and which are simply creating volume.
• Do you have a deliberate supplier strategy? The goal is not an arbitrary vendor count. It is a curated panel aligned to your needs, with clear expectations, transparent performance and the flexibility to adjust as demand changes. The best programs make supplier decisions with data, not habit.
• Are you solving every coverage need with external labor? Workforce optimization starts before the agency call. Internal clinicians, PRN resources, float capacity, scheduling changes and other workforce levers should be considered alongside external partners so the most operationally effective, cost-efficient resource is used first.

The goal is not to manage more staffing activity. It is to need less reactive staffing.

Contingent physicians and APPs will remain an essential part of the workforce. Vacancies, leaves and demand spikes are unavoidable. What is not unavoidable is managing every disruption as a one-off staffing transaction.

A stronger model connects demand, internal capacity, external supply, rates, quality and performance in one management strategy. That is the shift from reactive staffing to workforce optimization: preserving flexibility while creating more control over when, why and how external labor is used.

So before the next agency is added to the panel, ask a harder question: What does the data say is broken? If the answer is unclear, the opportunity may not be to add another vendor. It may be to redesign how the program is managed.

Before you add another vendor, understand what your current workforce model is telling you