Outsourcing in the Healthcare Industry (original) (raw)

A Comparative Study of Challenges and Opportunities of Outsourcing in Health Information Technology

Outsourcing is an inclusive, diversely defined term, which refers to transfer of executive or financial control of institutions owned by the government to the private sector. The purpose of the present study was to study the advantages and challenges of medical outsourcing and, more specifically, outsourcing of medical records and the employed information technology. The study was conducted according to descriptive-comparative method on the advantages and challenges of medical outsourcing and the employed information technology in 2012-2013. The data were gathered from information sources, articles, books, journals, and reliable websites on technology development and the advantages and challenges of medical outsourcing in the health area. Findings indicated that factors such as cost decrease, improvement of production process and productivity, quality increase, promotion of customer’s satisfaction were included among the advantages of outsourcing. But general medical outsourcing has undergone a slower growth compared to other types of outsourcing. For low income countries, a prerequisite for successful outsourcing was indeed creation of an environment, in which private sector could function effectively.

Outsourcing Non-Core Services in Healthcare: A Cost-Benefit Analysis

International Journal of Scientific Research and Management, 2024

Outsourcing non-core services in healthcare, such as housekeeping, IT support, catering, and security, has emerged as a popular strategy for healthcare organizations looking to reduce costs and focus on patient care. This paper presents a comprehensive cost-benefit analysis of outsourcing these services, considering both financial and operational implications. Through a combination of quantitative analysis and qualitative insights from healthcare administrators, the study explores how outsourcing affects cost savings, operational efficiency, and overall service quality. The findings indicate that outsourcing non-core services can lead to significant cost reductions—ranging from 7% to 28% depending on the service—while also enhancing operational efficiency. In particular, services such as housekeeping and IT support benefit from outsourcing due to the specialized expertise of third-party providers. Outsourced services not only reduce internal operational burdens but also contribute to a more streamlined allocation of resources toward core healthcare functions, including patient care. However, the analysis also highlights several risks, such as loss of control over service quality and concerns related to data security, particularly when IT services are outsourced. These challenges can potentially affect the reliability of healthcare operations if not properly managed. The study suggests that healthcare organizations must implement strict service-level agreements (SLAs) and performance monitoring mechanisms to mitigate these risks and ensure continuity of high-quality service delivery.

CARING MORE BY DOING LESS? AN ENQUIRY ABOUT THE IMPACTS OF OUTSOURCING ON PATIENT CARE

This study seeks to understand the potential impact of outsourcing on healthcare processes. By referring to a wider scope of industries and sectors, as they have been the experimental fields of most of the studies on outsourcing, we highlight the pros and cons of the externalization of activities related to patient care. Our purpose is to show and contextualize the (yet) ambiguous effects of relying on external partners in delivering services related to the health of patients. We argue that the seek for efficiency might sometimes hinder the global outcome of care; further we state that given the peculiar nature of the healthcare, outsourcing needs to be used within a wider strategic analysis of the activities. This study starts with a review of the literature on outsourcing strategies applied to healthcare sector and it also proposes an analytical model for decision-making. The main conclusion is that healthcare organizations should set up proper mechanisms for the governance of the overall transactions related to outsourcing in order to extend the span of control over the external providers as long as the effectiveness and the efficacy of the general outcome is not compromised. Both private and public health providers could benefit from a more reliable model for deciding on the span of their activities that can be outsourced.