Hospitals outsource to cut costs

The Healthcare Value Wire cites an article that backs up the notion of using outsourcing as a way to cut costs of back-office operations.

Big savings: Heritage Valley Health System in Western Pennsylvania outsourced its laundry service to save about $600,000 annually. It also outsources security at its two hospitals. The University of Pittsburgh Medical Center laid off about 130 medical transcriptionists and farmed out the work to Nuance, a technology company in Massachusetts. A company created last year by Highmark (Provider Supply Chain Partners) now handles purchasing and other supply chain functions for 15 hospitals in the area.

Many hospitals are forced to use outsourcing due to financial pressures. However, it makes perfect sense in one regard: a hospital’s core business is the medical care of patients, so outsourcing non-core tasks allows the organization to focus its time and resources where it really matters.

Do you have any operations that may be candidates for outsourcing? Have you used outsourcing already? Share your experience with others.