Executive Summary The healthcare industry in the U.S and Canada account for 72% of the global healthcare IT outsource market, taking the largest share of the market. The market is expected to reach $50.4 billion by 2018 up from $35 billion in 2013. IT Outsourcing is the factor that is leading this exponential growth. There are many key factor within IT outsourcing that is helping push the industry forward. The U.S. offers high quality care but it also comes at a higher price to patients so this is an industry that is confronted by the need to continue to offer quality service but reduce costs. With outsourcing, hospitals can gain benefits such as economies of scale as well as the benefit of having their work done by experts in that field. …show more content…
Addressing these issues would not be possible without the help from outsourcing, but healthcare providers must determine if there will be substantial value realized by outsourcing rather than keeping it in-house. The IT outsourcing market for the healthcare industry is forecasted to grow exponentially over the next few years. There are many benefits to using outsourcing. Organizations can realize great cost savings along with expertise knowledge and economies of scale. Faster results and risk minimization is also realized. Outsourcing allows for many aspects of the healthcare industry to be completed. From BPO services to enterprise resource planning instillation to laboratory management, the improved efficiency allows healthcare providers to focus on their core business. Healthcare providers need to optimize their sourcing strategies in a way that is sustainable and flexible. Healthcare providers must do detailed research in order to make sure that they are choosing the right provider for their service. Risks can be high with outsourcing in the healthcare industry because personal information and medical information is being transferred somewhere else, but if the right services provider is chosen things can go
The government controls and regulates healthcare somewhat because healthcare organizations are in a position to take advantage of the elderly and sick so there are regulations that protects them. It seems as though healthcare facilities are being paid less for their services today. Some critical measures for the survival of a healthcare organization are to optimize performance and quality. Finding system-wide efficiencies and cost reduction healthcare will help. In order to get better and keep high quality and performance while still raising reimbursements, it is necessary and important to involve doctors with the ideas and plans for any management strategies.
The health care organization with which I am familiar and involved is Kaiser Permanente where I work as an Emergency Room Registered Nurse and later promoted to management. Kaiser Permanente was founded in 1945, is the nation’s largest not-for-profit health plan, serving 9.1 million members, with headquarters in Oakland, California. At Kaiser Permanente, physicians are responsible for medical decisions, continuously developing and refining medical practices to ensure that care is delivered in the most effective manner possible. Kaiser Permanente combines a nonprofit insurance plan with its own hospitals and clinics, is the kind of holistic health system that President Obama’s health care law encourages. It still operates in a half-dozen states from Maryland to Hawaii and is looking to expand...
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
Objective 1: Improve services in the region area where the nonprofit organization is located by 40% by the end of the year. The health services within the organization needs improvement. To evaluate, we will need to determine how much funding available to improve services and to order new medical equipment. Each facility administration will keep account of the number of medical equipment supplies over the course of each year. Each facility will need to be addressed and examined to see what the needs are in each facility. To measure improve services, we will have surveys to give to the patients and families to ask how they feel bout new current healthcare services. The improve services will have better hands on medical help and quality and efficient medical technology equipment. Data will be
Recently outsourcing has been in the news, especially during political election years. It seems to be a phenomenon that is causing much concern among the population. But exactly how is outsourcing effecting both workers and businesses? And is it as big of a problem as politicians describe?
Since the quality of healthcare would not suffer, the only thing to lose through maximizing efficiency is a bunch of waste. Through its administrative simplification advocacy, the American Medical Association (AMA) claims that up to 14% of a physician’s revenue is taken up by administrative waste. The goal of the administrative simplification is to inspire physician practices to use computerized, instantaneous health plan transactions, minimize manual procedures through the claims revenue cycle, while increasing transparency and reducing vagueness with the payment process involving the insurance company. It is the AMA’s hope to push this movement into high gear, getting more practices on board and to eventually see a decline in wasteful and inefficient administrative
Buchbinder, S.B., & Shanks, N. H. (2007). Introduction to Health Care Management. Sudbury, MA. Jones & Bartlett Publishers. Performance Improvement in Health Care. 5, 81-135.
Competitive advantage matters greatly to those responsible for the management of healthcare institutions. Together with rapidly escalating healthcare costs, increasingly complex medical technologies, and growing regulatory and legal pressures, healthcare organizations face a critical need to improve the quality of care at reduced costs (Cu...
The person pursues healthcare service with great expectations such as quality health care, latest technological interventions and low cost for their service. Nowadays, one of the challenges facing by the health care providers is providing appropriate care and identifying their needs in a cost effective and comprehensive way without compromising the quality of care. Center for Medicare and Medicaid Services (CMS) reported “an rise in healthcare spending from $2.34 trillion in 2008 to $ 2.47 trillion in 2009, the largest one year increase since 1960” (Pickert, K, 2010). “The action to improve the American health care delivery system as a whole, in all of its quality dimensions such as efficiency, effectiveness, equitability, timeliness, patient-centeredness, and safety for all Americans” (IOM, 2011).
Kibbe, C. (2004, 07 09). Outsourcing: the good, the bad and the inevitable. New Hampshire Business Review, pp. 1A-21A.
The competitive advantage that can be gained by the companies through IS/IT outsourcing is Improved business processes. IT outsourcing an identification method and rigor of IT resources that can help the business run smoothly. It can control the development of the project budget and expenditures. It also can promote information technology investment proposals from outside and provide skilled individuals in managing IT resources available in the company. Through these companies are able to provide appropriate information and report to the company. This can give competitive advantage to the company. For example, expenditures, progress, and issues the company can be viewed and controlled.
Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.
...mplications that allow for opportunities of change. One of the presumptions is for training and staffing (Shi & Singh, 2012). With the utilization of health care improvements, the staff will need additional instructions on the performance of equipment and how to efficiently achieve the desired results. Managers or supervisors recognize the need for supplemental staffing and training to optimize patient satisfaction and quality of care. The health care administrator must also focus on changes in insurance policies and rules governing the provision of medical assistance (Shi & Singh, 2012).
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks. 2.3. 1.Know the