Thursday, November 18, 2004

Offshore Outsourcing Healthcare

InfoWorld reports healthcare organizations not considering offshore outsourcing are missing out on significant cost savings, but administrators need to be aware of potential risks, including lax handling of data security by some vendors and the effect on employee morale.

"Offshore outsourcing of some functions not directly related to patient care can deliver savings of 20 percent or more, said John Lovelock, a health care analyst with Gartner Inc. Gartner estimates health care organizations save an average of about 23 percent on outsourcing contracts, including IT and non-IT outsourcing, with some organizations seeing savings up to 45 percent on some outsourcing contracts, said Lovelock, who spoke at the Gartner Healthcare IT Summit in Baltimore."

"We are moving toward this simply because healthcare is under a lot of pressure," Lovelock said during a forum on healthcare outsourcing. "Healthcare needs to focus on its core business. We need to do what we do well, and stop focusing on what we don't do well." Lovelock listed a number of functions that could be outsourced, including IT jobs, claims administration, Web-enabled customer self-care, medical call centers and even radiology.

4 Comments:

At 11:29 PM , Anonymous Anonymous said...

Great blog I hope we can work to build a better health care system as we are in a major crisis and health insurance is a major aspect to many.

 
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