Outsourcing of Hospital Services
Outsourcing of Hospital Services
Every business has to determine whether they should perform a service themselves in-house or outsource that particular service to an outside vendor. Facility services and managements are just two of the services that can be performed either in-house or outsourced to a vendor. The following graph shows the relationship between company size and potential need for outsourcing. As a company reaches 1,000-10,000 employees, the potential need for outsourcing drops dramatically. In organizations of this size, sufficient resources can usually be found in-house to perform a function, as well as having resources to handle backup coverage.
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At first glance, it seems counterintuitive for a company to outsource highly-visible or important services. Once you look at all the things a company must do to handle a service in-house (and keep it running continuously), it becomes more evident why many companies choose outsourcing versus operating a service in-house. If a service is provided in-house, a company must: • Locate a qualified employee • Train the employee • Pay employee wages and benefits • Provide the employee a physical workspace • Provide the required equipment and technology
With outsourcing, the company must only: • Locate a reliable and high-quality vendor • Pay the vendor for the services provided Trying to structure your business today can be a difficult task. With each decision that is made, there are many questions that should be asked first; What and how can we increase profits the most, What and how can we cut cost? How can I increase efficiency? How can I control capital cost?
To answer that question, some businesses choose to outsource parts of it business structure. With one definition of outsourcing being the process of contracting a third party, you then have to ask yourself how or where the work will be performed. Let’s suppose that one organization, such
Every business has to determine whether they should perform a service themselves in-house or outsource that particular service to an outside vendor. Facility services and managements are just two of the services that can be performed either in-house or outsourced to a vendor. The following graph shows the relationship between company size and potential need for outsourcing. As a company reaches 1,000-10,000 employees, the potential need for outsourcing drops dramatically. In organizations of this size, sufficient resources can usually be found in-house to perform a function, as well as having resources to handle backup coverage.
[pic]
At first glance, it seems counterintuitive for a company to outsource highly-visible or important services. Once you look at all the things a company must do to handle a service in-house (and keep it running continuously), it becomes more evident why many companies choose outsourcing versus operating a service in-house. If a service is provided in-house, a company must: • Locate a qualified employee • Train the employee • Pay employee wages and benefits • Provide the employee a physical workspace • Provide the required equipment and technology
With outsourcing, the company must only: • Locate a reliable and high-quality vendor • Pay the vendor for the services provided Trying to structure your business today can be a difficult task. With each decision that is made, there are many questions that should be asked first; What and how can we increase profits the most, What and how can we cut cost? How can I increase efficiency? How can I control capital cost?
To answer that question, some businesses choose to outsource parts of it business structure. With one definition of outsourcing being the process of contracting a third party, you then have to ask yourself how or where the work will be performed. Let’s suppose that one organization, such
References: Outsourcing Linen Services: Practice Greenhealth. Retrieved from http://cms.h2e-online.org/ee/waste-reduction/waste-minimization/textile/outsourcing (2006). Benefits of Outsourcing Facility Management: Ezine Articles. Retrieved from http://ezinearticles.com/?Benefits-of-Outsourcing-Facilities-Management&id=383048 Manko, David, (2004). Hospital Outsourcing Continues to Expand. Retrieved from http://rivkinradler.com/rivkinradler/Publications/newformat/200403manko.shtml In-house versus Outsourcing: KMA One. Retrieved from http://www.kmaone.com/inhouseoutsource.htm Hunt, Heather, (2010) Muller Steam Specialties