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

Turning Facility Data Into ROI: Where Healthcare Leaders Should Start

Better data, smarter tools and small facility upgrades can drive measurable returns, guide ambulatory strategy and improve patient experience.


Sutter Health Breaks Ground on Advanced Cancer Center and Care Complex

The new center, located on Sutter’s Memorial Medical Center campus, will feature four stories and 165,000 square feet of modernized, patient-centered space.


Imperial Beach Community Clinic Caught Up in Email Cyberattack

The unusual activity they detected occurred between February 4, 2025, to May 2, 2025.


Social Media Driving Rise in Trade Jobs

Social media is the second largest career influencer for Gen Zers.


North Carolina Children's Receives $25M Gift from Coca-Cola Consolidated

The gift is the first step towards the goal of raising more than $1 billion for the new NC Children’s campus in Apex.


 
 


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.

 
 
 
 

Healthcare Facilities Today membership includes free email newsletters from our facility-industry brands.

Facebook   Twitter   LinkedIn   Posts

Copyright © 2023 TradePress. All rights reserved.