Building an Internal Resource Pool: A Blueprint for Saving Millions & Retaining Talent

If there’s one thing health systems have learned, it’s that traditional staffing models aren’t cutting it anymore. The healthcare labor market has shifted, and hospitals can no longer rely on expensive external agencies or rigid full-time staffing structures to fill gaps. Instead, internal resource pools (IRPs) are proving to be a smarter, more cost-effective solution for meeting staffing needs without sacrificing quality of care.

Over the past decade, Northwell Health has redefined what an IRP can be. Since launching FlexStaff in 2014, the health system has saved more than $250 million while building a 4,000-strong contingent workforce of shift-based employees, contractors, moonlighters, and internal travelers. But the true success of FlexStaff isn’t just in the numbers, it’s in how the program has evolved into an essential staffing engine, reducing dependency on external agencies, increasing workforce flexibility, and improving retention in a fiercely competitive labor market.

For health systems looking to implement a successful IRP, here are key lessons learned from Northwell’s journey.

Treat Your IRP Like a Business—Not Just a Staffing Program

One of the biggest mistakes health systems make is treating their internal resource pool as just another department. Northwell took the opposite approach and structured FlexStaff as a business with its own leadership, financial model, and a clear mission: Reduce labor costs while improving workforce flexibility.

If you’re building an IRP, think like an entrepreneur:

• Identify where you’re overspending – Are you paying millions to external staffing agencies? Spending excessively on overtime? Start there.
• Create a financial model – A well-run IRP can pay for itself many times over by replacing expensive external labor.
• Secure buy-in from leadership – The C-suite needs to see the IRP as a strategic investment that aligns with system-wide cost reduction efforts.

Give Workers a Reason to Join the IRP and Stay

A successful IRP isn’t just about filling shifts, it’s about attracting and retaining talent. An internal resource pool only works if your employees want to be part of it. Simply offering flexible shifts isn’t enough. Northwell realized early on that for FlexStaff to thrive, employees needed a reason to choose it over external agencies or gig work. Competitive pay is a factor but so is flexibility, predictability, and having an employer that prioritizes their well-being.

What makes an IRP appealing?

• True flexibility – Not just in scheduling, but in contract length and shift variety. Employees want options that fit their lifestyles.
• Career growth – IRP roles should provide pathways to permanent positions or leadership opportunities.
• Better work-life balance – Many nurses and allied health professionals leave full-time roles due to burnout. Your IRP should provide a solution, not another source of stress.

By focusing on engagement, Northwell has made FlexStaff the preferred choice for thousands of employees.

Compliance & Credentialing Can’t Be an Afterthought

A slow or clunky onboarding process can derail an IRP before it even gets off the ground. If it takes weeks to clear a new hire, they’ll take a job elsewhere. Credentialing and compliance need to be fast, seamless, and automated.

How can health systems improve?

• Streamline credentialing – Use technology to centralize and automate this process. The faster a worker is cleared, the sooner they can fill shifts.
• Standardize requirements – Ensuring uniform compliance processes across all locations reduces confusion and delays.
• Monitor credentials proactively – Automated reminders help prevent last-minute staffing gaps.

When credentialing is efficient and tech-enabled, IRPs can onboard staff quickly.

Build a Technology Infrastructure That Prioritizes Your Own Workforce

A successful IRP must be fully integrated into the organization’s workforce management system. Without a centralized technology platform, hospitals risk underutilizing their own talent while still overspending on external agencies.

At Northwell, FlexStaff is always prioritized before contract agencies. This is made possible through use of Prolucent’s flexible workforce platform, which consolidates all contingent staffing resources into one system, including both internal IRP and external agency workers.

Why does this matter?

• Enterprise-wide visibility – Managers can instantly see all available contingent labor, ensuring internal resources are used first.
• Automated decision-making – Smart algorithms ensure that IRP staff get priority before external agencies are engaged.
• Significant cost savings – By minimizing unnecessary agency spend, Northwell keeps labor costs in check.

For many health systems, staffing inefficiencies persist simply because they lack the right technology. The goal should be one system, one process, and one strategy for managing both internal and external staff.

Use Workforce Analytics to Inform Smarter Staffing Strategies

Workforce analytics transform an IRP from a staffing tool into a powerful, strategic asset. Use of metrics and centralized reporting has been a significant benefit for Northwell to help inform staffing decisions. 

Northwell’s FlexStaff team uses real-time dashboards and advanced analytics to monitor:

• Cost savings – Proving how much is saved by prioritizing IRP staff over external agencies.
• Utilization rates – Ensuring the right balance between full-time staff and flexible workers.
• Market trends – Adjusting pay rates and offerings to stay competitive in a changing labor market.

By continuously measuring impact and refining its approach, Northwell ensures that FlexStaff isn’t just an alternative staffing solution, it’s an indispensable part of the workforce strategy.

The Bottom Line

Healthcare labor shortages aren’t going away anytime soon. While external agencies and travel nurses will always play a role, health systems that take control of their workforce strategy will have a competitive advantage.

Northwell’s success with FlexStaff proves that when an IRP is built with strategy, engagement, compliance, technology, and analytics in mind the result is lower labor costs, higher workforce flexibility, stronger employee retention, and better patient care. For hospitals looking to future-proof their workforce, the message is clear: Invest in sourcing your own talent, and the returns will follow.