A healthcare provider’s main concern should be diagnosing, treating, and caring for their patients – not spending too much focusing on administrative tasks that can be outsourced. Outsourcing non-medical tasks and services can go a long way in providing excellent customer service, patient care, and improving your patients’ satisfaction.

Outsourcing administrative tasks can seem overwhelming, and pose some risks to those who are used to managing everything themselves. Outsourcing and running a practice can be a tough balancing act, so healthcare providers should weigh the pros and cons of whether or not outsourcing is best for their practice. 

Advantages of Outsourcing in Healthcare

One of the most commonly outsourced functions is IT. However, outsourcing in healthcare goes beyond this one function and includes:

• Pharmacy

• Mental health services

• Laboratory

• Medical billing

• Medical tourism

• Rehabilitation

• Imaging

• Sterilization

• Patient transport

• Security

• Procurement

• Facility management

• Physiotherapy

Outsourcing plays a crucial role in helping the health industry overcome challenges associated with finding the right talent for each of the above areas, especially in remote areas. However, as a health facility brings in additional resources to manage these functions, it can better concentrate on better service delivery.

Better Cost Control

Outsourcing helps in cost control by reducing administrative costs and enhancing process efficiencies. For example, it decreases HR expenses for recruiting and training new employees and also reduces turnover.

Consequently, an organization can enjoy better predictability and stability in its daily operations and overall business planning. Research shows that the average hospital needs to reduce costs by about 24% by 2022.

Creates a Competitive Edge

A healthcare facility can have a better playing field by outsourcing some functions because of the increased capabilities. These are usually unavailable in-house. As a result, healthcare providers quickly achieve valuable scalability, critical for supporting growth and fluctuating patient needs. Overall, outsourcing increases quality and efficiency in many ways for better outcomes in different areas.

The Downsides of Outsourcing in Healthcare

One of the most significant disadvantages is that it removes control of resources from a third party and transfers them to a third party. Besides, the success of outsourcing largely depends on choosing the right outsourcing company, which can sometimes be a complex process.

In some cases, there have been reports of data breaches and patient privacy concerns in outsourcing. Data breaches and hackers are a significant risk for healthcare systems that rely on outsourcing services. Consequently, healthcare providers and outsourcing partners should begin by instituting risk management and compliance programs to protect client data. If they can solve this hurdle, outsourcing should not be such a risky affair.

Other outsourcing-related challenges include potential quality issues. These arise from misunderstandings about the scope of work and total costs for the services. When outsourcing, healthcare organizations must consider the time and effort required to accomplish the outsourced tasks and amicably agree on developing a solid partnership upfront. Vendors must also be willing to be held accountable for their performance or lack of it.

Final Thoughts

Outsourcing in healthcare has its fair share of pros and cons. Nonetheless, if providers can mitigate the risks and choose their outsourcing partners wisely, they stand to gain a lot through outsourcing. Ultimately, the pros of outsourcing outweigh the cons. Fill out this form and let us get you started on streamlining some of your healthcare functions.