Reducing Contingent Labor Utilization by 75% in One High-Use Area
Highlights
A large academic health system reduced contingent labor utilization by approximately 75% in one high-use surgical services area after moving to Aya as its MSP. By validating every extension and backfill with hiring managers, the organization gained stronger visibility, tighter cost control and better governance over contingent labor.
- Utilization reduction: Contingent labor headcount dropped from approximately 40 to fewer than 10 in one surgical services area.
- Program visibility: Approximately 77% of contingent labor activity moved into the MSP for centralized oversight.
- Role validation: Hiring managers confirmed whether each role was still needed before extensions or backfills moved forward.
- Cost control: Aya identified unmanaged activity and rate-reduction opportunities.
Challenge
A large academic health system had contingent labor utilization spread across departments with limited oversight.
Agencies maintained direct relationships with hiring managers outside the MSP structure, driving automatic extensions and unvalidated backfills. Replacement candidates were often submitted before confirming whether roles were still required.
Over time, this created a cycle:
- Roles were extended by default
- New requests were opened without confirming a need
- Limited visibility into total contingent workforce usage
Even with a previous MSP in place, a significant portion of contingent labor activity sat outside the program, making it difficult to understand true utilization or control spend.
Solution
As part of a broader transition, the health system moved to Aya as its MSP, creating an opportunity to bring greater visibility and control to contingent labor activity that had previously operated outside the program.
Aya focused on addressing off-program utilization and introducing more oversight into extensions, backfills and vendor communication.
Rather than simply processing requests, the team worked directly with hiring managers to reassess ongoing needs before moving roles forward. The process shifted from vendor-driven to manager-informed, with Aya serving as a clear point of contact for workforce decisions.
Instead of automatically extending assignments or opening backfills, managers were asked a simple question:
Do you still need this position?
At the same time, Aya began identifying and bringing previously unmanaged activity into the MSP and identified opportunities to reduce bill rates that had not previously been adjusted.
Results
The impact was clear and measurable.
- In one high-use surgical services area, contingent labor headcount dropped from ~40 to fewer than 10
- Total contingent labor utilization decreased by approximately 75%
Across the program:
- Program capture reached approximately 77% as more contingent labor activity moved into the MSP, with some legacy agency activity still being transitioned
- Rate reductions created additional cost-control opportunities
Beyond the numbers, the organization gained something it didn’t have before: clear visibility into its contingent workforce and confidence that utilization aligned with actual need.
Seamless Workforce Continuity Through Organizational Change