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

What To Know Now About OSHA's Updated Hazcom Rule

The update requires careful attention because compliance is not optional, and OSHA has set firm deadlines extending through 2028.


HealthSource of Ohio and UC Health Partner for New Medical Office Building

Construction is anticipated to be completed in 2028.


NorthShore Health Centers Investigates Data Security Incident  

The organization became aware of suspicious activity on its computer network on or around Aug. 10, 2026, and took steps to secure its systems.


Healthcare Ransomware Attacks Reach Record High in Q3 2026

The report documented 306 ransomware attacks against healthcare organizations in Q3.


Bon Secours Mercy Health Acquires Fauquier Health

Fauquier Health is a 97-bed acute care community hospital serving Fauquier County and the broader Warrenton region.


 
 


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.