Outsourcing is Exploding in Health Care

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Outsourcing Traditionally, hospitals and health care systems have outsourced primarily support services such as housekeeping, laundry and food services, etc. They have contracted with large scale organizations to provide these services utilizing an economies of scale concept whereby contracting out these services allows for lower costs overall. More recently there has been a trend toward outsourcing the information technology services and indeed, healthcare delivery as well, such as dialysis anesthesia and Emergency Department staffing, hospitalists and diagnostic imaging (Punke, 2013) Prevalence With consolidation among hospital systems over the last few years there has been a trend toward ways to streamline processes. By having “shared services” such as laundry services, human resources and radiology and diagnostic services it’s possible to lower costs and have common processes. The advent of health care reform and the Affordable Care Act (ACA) with its Information Technology (IT) incentives has led to greater interest in risk management and IT solutions. While there was a decrease in 2012 on outsourcing IT services the finalization by the Supreme Court of the ACA and President Obama’s re-election cemented the need for an IT solution (Kutscher, 2012) With the federal sequester that added a 2% cut to Medicare reimbursement and the healthcare reform leading to a decrease in hospital admissions for some organizations, the bottom line has become ever more important. Some organizations have used layoffs as one means of cost-cutting but even more are streamlining by outsourcing those services that can be better done by organizations devoted to that one activity (Punke, 2013) The driver of this is the cut to reimbursement. In Modern He... ... middle of paper ... ...etrieved from http://articles.latimes.com/2012/jul/25/business/la-fi-healthcare-offshore-20120725 Morrissey, J. (2013, October 1). Telemedicine: “If you aren’t doing anything now, you’re way behind”. Hospitals & Health Networks, 87(10), 22-23. Punke, H. (2013). Outsourcing is exploding in healthcare - will the trend last? Retrieved from http://www.beckershospitalreview.com/workforce-labor-management/outsourcing-is-exploding-in-healthcare-will-the-trend-last.html Stempniak, M. (2013). Electronic visits slow to be embraced by payers and providers. H&HN: Hospitals & Health Networks, 87(10), 25. UntiedHealth Group [Brochure]. (2012). Retrieved from www.unitedhealthgroup.com/~/media/uhg/pdf/services/unh-gloal-brochure.ashx? Whitten, P., & Buis, L. (2007). Private payer reimbursement for telemedicine services in the United States. Telemedicine and e-Health, 13(1), 15-24.

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