Medical outsourcing versus in-house development Essay Example

Medical outsourcing versus in Medical outsourcing versus in-house development Paper Medical outsourcing versus in-house development Paper Outsourcing has been a very controversial topic in the modern business environment.   This is because of the diverse benefits and costs that organizations which outsource, or fail to outsource, face.   Outsourcing involves sub-contracting services to other companies or firms, as opposed to in-house employees performing them. According to Altinkemer Chaturvedi (1), a company or firm enters into a contract with a vendor and the contract defines nature of outsourced services.   Such companies that have been given these contracts are usually professionals in that field, and provide the services more efficiently and relative easily, than the company that contracts them. The major reason that companies outsource services is to concentrate on their core activities and to save money.   It is also done to conserve use of labor, land, technology, capital and other resources.   In the medical field, outsourcing is also common due to similar reasons.   Services that can be outsourced in this field include surgery, treatment, IT services, facility management, catering among other services. Benefits of medical outsourcing. Cost One benefit of medical outsourcing is the reduction in cost.   According to Lauren (68-73), patients who would have otherwise not afforded health care are given a chance to access it, from specialists who charge cheaper than the medical facility.   Countries such as Philippines and India are reputed to be relatively cheap and this is the reason that foreigners flock to these countries.   This is however a benefit that is mostly enjoyed by the patient, since it is an opportunity cost is foregone by the hospital, in case the facility could have handled the problem. In terms of the health facility, outsourcing non-cores services reduces costs, due to increasing efficiency and effectiveness of operations.   This is achieved through delegating such duties to professionals.   Costs are also reduced since the medical facilities do not have to invest in capital equipment for activities that they outsource.   The vendors own their own equipment that they use to operate their activities.   Plant ownership and fixed overheads are eliminated, which saves money for the facility. Core services. Another benefit of medical outsourcing, especially if it involves facility management, is the fact that the medical facility can concentrate on providing its primary service, that is health care.   Other services provided by hospitals include catering, cleaning and maintaining stocks among other services. These services, though necessary, are the non-core services that are provided by medical facilities.   Outsourcing them would enable the medical facilities provide quality health care.   According to McEntee (12-18), such services would be delegated to professional in those fields, which would reduce the energy and time that medical facilities use in providing them. Customer satisfaction. Outsourcing non-core activities would also enable the medical facilities improve satisfaction by clients.   According to Ronan (77-88), this is through provision of high quality services due to two reasons.    The first reason is that the facility concentrates in its core specialty, which leads to attainment of higher levels of productivity.   The second reason is that such activities are delegated to professionals in those fields, who perform them effectively, and with relative ease, since that is their specialty.   This has the overall effect of improving effectiveness and efficiency of operations and hence achieving the objectives and goals of medical facilities.   This enables the needs of the customer to be satisfied. Career opportunities. When activities that are outsourced by medical facilities are performed within the premises of the hospital or health center, this provides opportunities for employees to learn from professionals.   They can get access to new skills or more efficient methods of achieving the desired tasks.   This may even create alternative careers for such employees.   Acquisition of new skills improves their professional resume, which may help advance their careers.   They are also able to make informed decisions due to access to a variety of information.