One major undertaking that hospitals often must consider is outsourcing. However, before senior leadership can give outsourcing a green light, they must consider (a) reasons why to outsource, (b) obstacles to outsourcing, (c) best practices of outsourcing, and (d) implications to hospital management. There are several large outsourcing vendors, the larger ones being Sodexo and Aramark, and they use their size to demand lower prices and higher quality from supply vendors, equipment merchants, and other service organizations. Smaller outsource vendors often do not enjoy this benefit. Obstacles to effective outsourcing are numerous in health care. The federal and state regulations, medical practices, and personal feelings can be factors that affect the decision to use an outsourcing vendor. Obstacles aside, there are "best practices" that can provide offsetting benefits to the hospital. Considering more than just the bottom line can be a bonus that assists senior leadership with the decision to outsource. Management has many other areas to consider, such as addressing legal, ethical, and moral concerns properly. The purpose of this study is to give hospital senior leaders a point from which to start. It is not intended to provide a definitive answer on whether or not to outsource.
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