Essay Sample on Outsourcing: Cut Costs & Focus on Core Business Activities

Introduction

The idea of outsourcing refers to business practices whereby a company hires an individual or another farm to operate tasks, handle operation or deliver services that are performed by the company own employee (Goo et al, 2009). The companies use outsourcing practice. To cut the cost of labor such as salaries for its employees, overhead, technology as well as the cost of the equipment. Additionally, the outsourcing process may be used by the companies for down dialing as well as focusing on the major aspects of the organization, spinning off the operations that are less critical to the outside organization. However, as per (Zuberi & Ptashnick, 2011) hospitals in which the outsourced services are retained in house bases their believes that their present employees can perform better than the outside vendors. Further through executing the work outsourced within the hospital proves to be of more advantage to the hospital than the outsourced work executed outside the hospital. By this move, the idea ensures retaining the organizational cultures that facilitate to quality of production ensured by employees' cohesion. Also, through in- house outsourcing, ensure easy monitory of the service quality that still preserves the organization culture. On instances whereby different hospitals tend to outsource services such as food services and decides them not to be performed in-house, it may result in rationale incompetency.

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Deaconess Clinic Billing, Montana

Deaconess billing clinic is a health care center based in the billing city of Montana. The Deaconess billing clinic was first established by Dr. Arthur who began his billing practices on medical in 1911. After so much practicing on his own, Dr. Athur was joined by Movius and Bridenbaugh in 1915 as an assistant. Bridenbaugh and Movius started operating with groundbreaking equipment up to during World War 1 when Bridenbaugh joined the military where he was trained on radiology. After, his return from war, Bridenbaugh incorporated radiation therapy and x-ray diagnostic into his practice. However, in 1939, the clinic apprehended a plan of recruiting new medical personnel as hospital partners a move that led to changing the clinic name to the Billing clinic which its construction started from the Deaconess Hospital in 1950. In 1993, the billing clinic and Deaconess Medical Center combined forming an integrated health care organization that was now named as Deaconess Billing Clinic (Baskin, 2000).

Currently, the Deaconess billing clinic forms the largest medical provider in the region of Montana whereby the clinic provides both inpatient and outpatient services. The clinic contains a family center unit that offers 20 suites LDRP unit, an electronic medical record, a trauma center offering all state of art emergency as well as the intensive care services and inpatient cancer care Unit.

However, in my view, the increased services that were required to be delivered due to the increased development within the Deaconess clinic billing required the clinic to employ more workforce. In order to deliver quality services, the employees would require higher pay a condition that might have led the economic pressure to Deaconess Clinic billing. The increased medical service centers such as the cancer sector, trauma centers indicate the likeness of high turn-up of the patients. Due to this, the Deaconess clinic billing has to maximize its various services such as the laundry service, cafeteria food service as well as housekeeping services all of which will require higher capital for their delivery.

Due to the high amount of funds required to service all the sectors by the Deaconess billing clinic, the situation would prove to be a head-scratching fulfillment. The increase in operations in Deaconess clinic billing such as the laundry service, cafeteria food service as well as housekeeping services facilitated to the demand for higher wedges by the employees working in those sectors. This demand for higher wedges by the employees in deaconess clinic billing places the clinic at risk of undergoing financial shortages. Through higher payment of the salaries by the company other clinic services are also put at risk of being delayed or even postponed this further demonstrates what could be a clinic operation deadlock since the interdependent operations will not be able to be executed due to the failure of the other operation.

In order to control the occurrence of the deadly outcomes within Deaconess clinic billing, the organization had to adapt to the most possible mechanism of outsourcing of the hospital services. Through outsourcing of the housekeeping services by the Deaconess clinic billing to an outsourcing company facilitated to lower employee turnover that was later reemployed by the outsourcing company. This move facilitated to decrease in staff hiring and training costs that could have been facilitated by the Deaconess clinic billing. Further, the process of outsourcing the cafeteria food services as well as the laundry services by the Deaconess clinic billing would ensure a reduction of administration overheads. Through this, the clinic would ensure the excessive and unnecessary expenditures are reduced. The saved amount through outsourcing could be used in reinvestment to improve the fundamental hospital services and facilities such as purchasing of medical equipment for improving the patient experiences. Additionally, the move by the Deaconess clinic billing would ensure improvement in focusing on patient care. Through outsourcing non-clinical tasks to an outsourcing company, the medical practitioners will have an easy and smooth time of focusing on patients' needs and deliver quality care.

Despite the decision by the Deaconess clinic billing to outsourcing most of its nonclinical task to an outsourcing company, as per my view, I would suggest a different mechanism that might assist the clinic in maximizing its outputs. I would suggest to the clinic management that, other than having the outsourced work performed outside the hospital, it would be more productive when performed within the hospital as it was done in cafeteria and food services since the involved employees have an understanding of the clinic cultures on how tasks are performed and what the clinic requires. Further, I would recommend the Deaconess clinic billing to conduct proper research when deciding on the company to outsource to their services since the move will help the management to identify the correct company that would bring some benefit to their farm

Conclusion

Deaconess clinic billing being a very old health care center in the region of Montana proves to be still the most outstanding health care center due to its consistency in services administration. The clinic's decision to have it non-clinical services outsourced would ensure the reduction of cost of operation as well as increased quality delivery of health services by the practitioner since the focus is directed specifically to matters relating to patient's health. The clinic would also enhance its productivity by directing funds that were initially used for unnecessary non-clinical services to more productive clinical services.

References

Baskin, K., Goldstein, J., & Lindberg, C. (2000). Merging, de-merging, and emerging at Deaconess Billings Clinic. The Physician Executive, 26(3), 20-25.

Goo, J., Kishore, R., Rao, H. R., & Nam, K. (2009). The role of service level agreements in relational management of information technology outsourcing: an empirical study. MIS quarterly, 119-145.

Zuberi, D. M., & Ptashnick, M. B. (2011). The deleterious consequences of privatization and outsourcing for hospital support work: the experiences of contracted-out hospital cleaners and dietary aids in Vancouver, Canada. Social Science & Medicine, 72(6), 907-911.