Assessing uncertainty in outsourcing clinical services at tertiary health centers

Abstract

When tertiary health centers face capacity constraint, one feasible strategy to meet service demand is outsourcing clinical services to qualified community providers. Clinical outsourcing enables tertiary health centers to meet the expectations of service timeliness and provides good opportunities to collaborate with other health care providers. However, outsourcing may result in dependence and loss of control for the tertiary health centers. Other parties involved in clinical outsourcing such as local partners, patients, and payers may also encounter potential risks as well as enjoy benefits in an outsourcing arrangement. Recommendations on selecting potential outsourcing partners are given to minimize the risks associated with an outsourcing contract.

Outsourcing of healthcare services in a smart city of Eastern India

“…The third implication of the study is about the various reasons for the outsourcing of different clinical, as well as non-clinical services and most of the international literature tends to emphasize the financial and strategical advantages as the reasons behind outsourcing (Billi et al , 2007; Raeissi et al , 2018). In line with the existing literature, our findings also show that the concentration on core services, capital expenditure reduction, better management control, better access to expertize and work flexibility are the driving forces for outsourcing.…”

“…Outsourcing allows a tertiary health center to become more specialized in concerned services (Aziz et al , 2017; Billi et al , 2007). Studies from different countries such as USA, Taiwan and some of the Eastern Mediterranean regions found that outsourcing allows a tertiary health center to concentrate on the management of core mission and advance its distinct specialty to achieve its strategic goals (Guimaraes and Carvalho, 2011; Billi et al , 2007).…”

“…Outsourcing allows a tertiary health center to become more specialized in concerned services (Aziz et al , 2017; Billi et al , 2007). Studies from different countries such as USA, Taiwan and some of the Eastern Mediterranean regions found that outsourcing allows a tertiary health center to concentrate on the management of core mission and advance its distinct specialty to achieve its strategic goals (Guimaraes and Carvalho, 2011; Billi et al , 2007). Outsourcing of certain independent tasks allows a hospital to maintain financial flexibility if there is uncertainty in demand; and it also reduces the out-of-pocket expenditure, which increases customer satisfaction, thus creating a stream of loyal customers (Young and Macinati, 2012; Billi et al , 2007; Moschuris and Kondylis, 2006; Siddiqi et al , 2006).…”

“…Some of the hospitals have negatively responded to outsourcing as a strategic tool as it limits the control over outsourced operations, staff and customer satisfaction (Guimaraes and Carvalho, 2011; Kahouei et al , 2016; Billi et al , 2007; Lau and Zhang, 2006). The presence of local protection regulation and lack of overall post-outsourcing measurement will create a conflict between the clients and the outsourcing vendors (Lau and Zhang, 2006; Gaspareniene, Remeikiene and Startiene, 2014).…”