Is hospital outsourcing a short-term trend?

Hospitals have increasingly reduced costs with outsourcing to deal with Medicare cuts and healthcare reform

By Healthcare Facilities Today


Hospitals have increasingly reduced costs with outsourcing to deal with Medicare cuts and healthcare reform, according to Becker's Hospital Review.

Despite this, experts believe the trend may not persist in the long term. "The driver is the cuts in reimbursement," Becker's quoted Adam Higman, vice president at Soyring Consulting, in the article. 

Housekeeping, food services and other support staff, are usually most affected by outsourcing, but there has been increased outsourcing in more specialized functions, such as IT and clinical services, the article said.

However, the shift toward healthcare outsourcing may reverse as hospital consolidation increases among hospitals and physician groups, according to the article. 

"What I think is going to happen is as hospital systems get bigger, they may begin creating their own operations," Barnabas Health President and CEO Barry H. Ostrowsky said. "Outsourcing may start to decline as companies are big enough to perform the services in an equally efficient way."

Read the article.

 

 

 

 



October 9, 2013


Topic Area: Industry News


Recent Posts

All Eyes on Gen Z as They Enter the Workforce

As the labor gap widens in the facilities industry, not many managers trust Gen Z to fill that hole.


Cleveland Clinic Starts Fundraising Effort for New Hospital in West Palm Beach

Plans for the new hospital include approximately 150 inpatient beds, an emergency department, a medical office building and an ambulatory surgery center.


Cultivating a Workforce in the Face of Skilled Trade Shortages

Facilities managers must make concerted efforts to attract skilled trade workers to their facilities and retain them long term.


Prime Healthcare Acquires 8 Ascension Hospitals in Illinois

They also acquired a number of other facilities in this acquisition.


Charging Ahead: Incentives Driving EV Charging in Healthcare Facilities

Manufacturers discuss how incentives impact the decision-making process.


 
 


FREE Newsletter Signup Form

News & Updates | Webcast Alerts
Building Technologies | & More!

 
 
 


All fields are required. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.