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

Building Around Care: Lessons in Modernizing Active Healthcare Environments

The challenge is how to modernize a healthcare facility while patients continue receiving care and physicians, nurses and staff continue providing it.


St. Luke's Heart Hospital Opens at Anderson Campus in Pennsylvania

The five-story, approximately 355,000-square-foot facility is seamlessly integrated into St. Luke's Anderson Campus.


WindRose Health Network Ensnared in Vendor Data Breach

The incident involved a previously undisclosed vulnerability in a remote-management tool that is used by one of its vendors.


How Efficiency Checklists Help Hospitals Save Energy, Water and Money

Keith Edgerton explains how a simple, systematic tool can help healthcare facilities identify savings, support sustainability goals and reinvest in long-term decarbonization.


Intermountain Healthcare Receives $50M Gift for Standalone Children's Hospital

To honor the family's gift, Intermountain Health will name the inpatient tower the Larry & Heidi Canarelli Inpatient Tower.


 
 


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.