10 Considerations for Hospitals Looking to Outsource Services

Hospitals commonly outsource services in building operations, maintenance, facilities management, food, janitorial and other areas, but choosing the wrong route could cost the hospital money, according to a whitepaper from outsourcing firm Johnson Controls.

Here are 10 thoughts hospital and health system executives and staff should consider if they want to outsource, according to the whitepaper.

1. Choose an outsourcing partner carefully, and conduct a rigorous interview process to find the right partner.

2. Create a two-way dialogue with the outsourcing firm so collaboration becomes a mutual goal.

3. Appoint a mentor within the hospital or health system to work exclusively with outsourcing firms.

4. Insist on continuity with an outsourcing provider. Usually, outsourcing providers hire back 70 to 80 percent of the hospital or health system's staff, and executives have to make sure that is the baseline at the very least.

5. Weigh the value of a long-term outsourcing contract versus a short-term one.

6. Establish the necessary data, analytics and key performance indicators to find out if the outsourcing firm is saving money while also maintaining a positive environment for physicians, nurses and other staff.

7. Determine how the outsourcing vendor can create systemwide efficiencies through centralized purchasing, consolidation of vendors and standardization of maintenance practices.

8. Find out where big cost improvements can be made — such as volume purchasing, energy savings, equipment maintenance and labor control without layoffs.

9. Look beyond cost savings to see where outsourcing firms can help with patient safety, patient satisfaction and other areas emphasized in the Patient Protection and Affordable Care Act.

10. Demand accountability.

More Articles on Hospitals and Outsourcing:
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HCA's Parallon Acquires Revenue Cycle Firm
9 Burning Trends in Healthcare Finance, Outsourcing and Transactions

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