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Hospitals continue reliance on outside contractors

By Fred Bazzoli

Some 70 percent of hospitals expect their volume of contracted services to grow or remain unchanged over the next two years, according to a new study released by VHA Inc., a national health alliance.

Nearly three-quarters (74 percent) of respondents reported that their hospitals use contract services because they lack internal resources.

The survey, which brought responses from 161 hospital administrators, materials managers and support service executives, indicates that hospitals outsource and purchase services as a way to address shortage issues and reduce operating costs.

"Hospitals are increasingly outsourcing to help achieve their business and financial goals, which is critical in today's fiscal climate," said Amy Anthony, vice president of supply chain services at VHA. "Strategic use of purchased services means that hospitals can focus on their No. 1 goal - providing quality care to patients."

One area where hospitals are planning to focus their outsourcing efforts is information technology. Some 63 percent of respondents say they plan to invest in electronic medical records systems. Some 34 percent say they look to outside suppliers for assistance with information technology.

 

The study revealed that the top services hospitals currently outsource include:

•Support services: Document management, shredding services and laundry services (74 percent)

•Capital asset: Facility and equipment planning (58 percent)

•Clinical operations: On-call radiologists/off-hour services (56 percent)

•Revenue management: Billing and collections (55 percent)

•Human resources: Computer-based learning systems and employee benefit plans (52 percent)

The study is the seventh in a series of research studies that VHA has conducted on services contracting. VHA looks at member reasoning and attitudes for outsourcing, which are services contracted externally to a third party, such as housekeeping services, and for purchased services, which are services purchased from third parties but the function is completely internal, such as audio conferencing. VHA offers members purchased services and outsourcing contracts with more than 70 third-party suppliers.