According to Becker’s Hospital Review, hospitals have increasingly been reducing costs to combat Medicare cuts and healthcare reform. [twitter.com/HealthITplus]
The trend of hospital outsourcing is on the rise but experts believe this trend will not persist in the long-run. Adam Higman, Vice President, at Soyring Consulting comments, “The driver is the cuts in reimbursement. [Hospitals] know they have to be more efficient and have to save money. That’s helping drive [outsourcing] decisions.”
Hospitals have been assessing options in outsourcing their various functions such as IT and clinical services. The article: Healthcare IT Outsourcing Demands Are On The Rise, states that the healthcare IT outsourcing segment is witnessing continued growth and is forecasted to grow at a compound annual growth rate of 7.6 percent, to reach $50.4 billion by 2018 from $35 billion in 2013.
Meanwhile, the top five most commonly outsourced patient care services include dialysis, anesthesia, diagnostic imaging, hospitalist staffing and emergency department staffing. “We will continue to see outsourcing in these areas in the next two to three years,” John Boland, director of healthcare at consulting firm Navigant, told Becker’s.
The main reasons that drive hospitals to rely on outsourcing is that although they are musts for full-service acute care hospitals, they do not rely on a long-term physician-patient relationship. The hospital outsourcing trend may also backfire as hospital consolidation increases among hospitals and physician groups, according to Becker “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 told Becker’s. “Outsourcing may start to decline as companies are big enough to perform the services in an equally efficient way.”