For effective operation and achieving of the outsourcing objectives, healthcare facilities have to find reliable business associates who will offer cost-effective and quality services that meet patient expectations. Prevalence and trends of outsourcing in the healthcare industry The prevalence of outsourcing in the healthcare industry is low as compared to other industries though it is picking up at a fast rate due to increasing financial pressures and demand for better services by patients. The trends of outsourcing in healthcare are increasing as evidenced by the decreasing restrictions on the types of services being outsourced by healthcare facilities. Many outsourcing relationships now are like long-term strategic partnerships instead of arrangements that are tactical and single-purpose in nature. This indicates increasing interest in outsourcing by healthcare facilities. Hospitals are the main types of organizations in healthcare which utilize outsourcing to a greater extend. However, there is a difference in the trends and prevalence rates among the for-profit hospital settings and the not-for-profit hospital settings. More of the profit-oriented hospitals are outsourcing as compared to the non-profit hospitals. Currently, profit-oriented hospital settings outsource up to 25% of their services and their non-profit oriented counterparts are expected to reach this level in the near future (Harris, 2001). One of the areas in which outsourcing is utilized in healthcare is medical transcriptions. This is done as a strategy for dealing with the increasing need to document medical records hence it is a more-cost effective way of adding to back offices. Outsourcing in this area is growing at a significant rate of 15% annually. The third most commonly outsourced service in healthcare facilities is linen/laundry services. This is driven by factors like increasing costs of operating a laundry and upgrading efficient laundry equipment. There is also increasing laundry volumes due to the increasing number of patients (Harris, 2001). Ambulance services, gift stores, and security services enjoy a moderate level of outsourcing in the healthcare sector. The most recent service to be outsourced services is IT services. EHRS outsourcing is picking up even as physicians are being encouraged to adopt and use EHRS. The complexity and urgency of implementing and maintaining EHRS is the driving factor behind its outsourcing. The healthcare industry has also begun contracting for software applications. These services are offered by 3rd party application service providers (ASP's) (Kirchheimer, 2005. Other services that experience varied levels of outsourcing include management of facilities, feeding of patients, transportation, health information management (HIM) and clinical services. One of the companies offering medical transcription services is Chromolume Transcription, a company located in Santa Monica, California. Hospital TeamCare provides physician outsourcing whereas Precyse Solutions provides HIM outsourcing. Experience of healthcare organizations that have tried outsourcing Some of the healthcare organisations that have tried outsourcing include Launceston General Hospital and Westbury Community Health Centre. These hospitals outsource their linen services to Northern Tasmanian Linen Service
Outsourcing in Healthcare Facilities Competition and environmental pressures have led to increased use of outsourcing in the healthcare industry. This strategy is a tactical response to the issues of tight budgets, demand for better service by patients and labour shortages…
Most multinational companies outsource their production and manufacturing activities, but these organisations are under constant pressure to control costs. They have to outsource non-core but essential services. The question of time also demands outsourcing since products have to get to the market as quickly as possible.
One of the stakeholders includes hospitals and health care institutions. The goals of hospitals are to relay information regarding healthcare in the United States. Hospitals take part in the transfer of health information between healthcare providers throughout the U.S.
The specific elements of this plan include actual floor plans and the basic architecture and elevation of the building itself. Furniture and equipment arrangements are also planned during the design period. These decisions are made by the architect based on the price of the furniture and the style that we want for the facility.
This study therefore highlights an online article on outsourcing, the IT functions outsourced, rationale behind outsourcing by organizations in each case, with the aim of establishing the benefits of outsourcing to the referred
The car par, the five room allocation, cleaning services, portage and janitorial services and both the front office and reception activities are not owned privately by either of the institution. Their usage must be
(2009), defined off shoring as the act whereby a company delegates or contracts another external company in a foreign country to perform some of its business functions or process, this functions or process might be the same as those that have been
Secondly, a company may choose to outsource in the event that it is willing to share the risks associated with manufacturing. By choosing to outsource, the company does not have to face the risks involved alone. They share the risks with the outsourced vendor thus