Hospitals are outsourcing more functions, at least for now

The federal sequester took a 2% bite out of Medicare reimbursements, and healthcare reform and other forces have led to lower inpatient volumes for many providers. Now hospitals are turning to outsourcing to save money, according to Becker’s Hospital Review. Traditionally, hospitals and health systems have outsourced support functions such as housekeeping, laundry services, food services, and even supply-chain management. With outsourcing on the rise, however, other functions have seen outsourcing growth, including information technology and clinical services, Becker’s reported.

Some forces are contributing to an uptick in outsourcing for hospitals, but that does not mean the trend toward outsourcing is stable. In fact, other forces could lead hospitals to begin to "in-source" again. For instance, as hospitals consolidate with other hospitals or physician groups in their market, the use of outsourcing may drop, according to the report.

Source: Becker’s Hospital Review