Hospitals outsourcing more services
Hospitals across the country are outsourcing more specialized patient services, such as dialysis, diagnostic imaging and hospice care, according to the results of a study released Jan. 22.
The report, commissioned by the law practice of Waller Lansden Dortch & Davis, found that 78 percent of the hospitals that responded to the survey are currently outsourcing some patient services, with almost half (45 percent) currently outsourcing either one or two services.
The study found that larger hospitals -those with more than 200 beds- were more likely to outsource services than small hospitals with fewer than 50 beds (86 percent vs. 68 percent).
In addition, the survey of 266 hospital executives found that 83 percent said they expected their facilities' outsourcing levels will increase or stay the same in the near future.
Dialysis services were the most likely to be outsourced, with 31 percent of facilities reporting that they looked to the outside for these services. Other commonly outsourced patient services included sleep disorder, outsourced by 24 percent of hospitals; diagnostic imaging, 23 percent; laboratory services, 18 percent; and hospitalists and specialty equipment, 17 percent.
"As hospitals continue to adapt to the changing healthcare environment, executives are weighing the issue of outsourcing patient services on a daily basis," said Reggie Hill, head of Waller Lansden's healthcare practice. "Because most outsourced services are not separately licensed, it is difficult to gather any data. This study is a much-needed first step. We hope it will be viewed nationally as a benchmark for the healthcare industry against which future developments can be measured."
Some 55 percent of respondents said they made the decision to outsource because of vendor expertise in the area. Comments from hospital leaders said the decision to outsource often depended on two considerations – talent and cost.
"It depends on whether the service they are providing is one they could provide at a greater economy of scale than we could provide in our own facility and still meet the high expectations of patient care," said Steve Hyde, COO of 320-bed Rio Grande Regional Hospital, McAllen, Texas, in responding to the survey.
"Financial reimbursement is a major factor driving the outsourcing of patient services. For example, hospitals typically lose money on the provision of dialysis services to inpatients," Hill said. "This leads many hospitals to contract with dialysis centers to provide both inpatient and outpatient services. Thus, dialysis care was cited as the most frequently outsourced service in the survey."
