Navigating the Outsourcing vs. Hiring Dilemma
By Pamela J. Gallagher
Among the dilemmas facing healthcare executives, the decision to hire more in-house staff or outsource non-core functions of an organization is becoming increasingly common and complex. In the healthcare industry, business process outsourcing (BPO) can allow hospitals to increase their focus on what they do best: caring for patients and serving them well.
BPO includes benefits like lowering costs, increasing efficiencies, increasing focus on core business functions, and partnership with trusted experts in a wide variety of front- and back-office functions. But outsourcing has a cost that is more than just financial. Working with a BPO company requires releasing control, and if the relationship doesn’t work out, it can be hard to recover, both for your organization and your people.
Is business process outsourcing (BPO) right for my organization?
How do you know if it makes sense to outsource a function of your hospital or healthcare company? Start by weighing the costs and benefits to determine if outsourcing makes more sense financially than hiring or training an in-house employee. Ask yourself questions like:
What specific process or function does my organization need performed? Where is this function lacking in efficiency or cost effectiveness?
Does my organization currently have the skill set needed to perform this function internally? Locally?
What is our budget for this function, process, or service? What can we afford?
How often and for how long do we need this function performed?
If it has been determined that it is financially viable and necessary to your company running efficiently to outsource a service or process, here are some things to consider as your company explores outsourcing options.
Be selective.
The global market for BPO services is projected to reach $332.4 billion by 2025, according to research from Global Industry Analysts, Inc. With the quantity of BPO companies and the services offered by them on the rise, your organization can find an outsourcing company that can meet your specific needs.
Be thorough in your research on BPO companies and the customizability of the function and duration of their services, and take the time to find the right fit. For example, if a hospital’s billing office has a backlog, outsourcing could be helpful, but the need will only last until the billing office is caught up. Additionally, rapid changes in the healthcare industry might necessitate intermittent help with coding, for example, as your internal staff gets caught up to speed.
As you consider outsourcing partners, you must determine if it is a company you can trust. If the process your healthcare organization is outsourcing includes the handling of your (or your patients’) confidential info, you must ensure that the third-party outsourcing company has the ability to securely handle sensitive information and is worthy of your trust.
Remember too that as with most things in life, you get what you pay for. Eating out is a personal outsourcing of sorts, and anyone can tell you that you can’t expect a steak dinner at McDonald’s prices. And conversely, if you’re paying steakhouse prices, you should expect your deliverables to be high quality and “cooked to order,” so to speak. It’s important to have an understanding of what level of service you need and should expect to receive with your organization’s specific budget.
Ensure culture fit.
You wouldn’t hire a person to work at your hospital if he or she wasn’t a good fit for your company culture and values. Such a hire would not only negatively impact the healthy culture your executive team and employees have worked hard to build, but that person would also impact your organization’s reputation in the community and industry.
The same is true when hiring a BPO company. Whether your hospital is outsourcing a business process like human resources or billing, or a patient-facing function like dialysis or meal services, remember that patients’ interactions with these outsourcing companies are a reflection of your organization. You must ensure a culture fit with a BPO service before you sign a contract.
If your healthcare organization opts to outsource, you are still ultimately responsible for your patient’s interactions with that outsourcing company. You must manage the relationship with the companies you choose to partner with. Frequent and preemptive communication and clear expectations are essential for making BPO services work for your organization and patients.
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