Pamela J. Gallagher

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In recent decades, many companies have adopted the maxim, “Do what you do best, and outsource the rest.” From the ability to focus on the core of their business to gaining outside expertise to boosting their quality of service, there are 

 outsourcing may be appealing to an organization.

The healthcare industry, however, has long been resistant to the idea of outsourcing parts of their operations, with a tendency toward believing healthcare is “different” than other industries. But healthcare is a business too, and we need to take a look at the numbers before rejecting outsourcing. By keeping everything in-house, organizations drive expenses up unnecessarily. Hospitals don’t need a whole team of people for everything.

With the forced advent of remote working during these past few months, healthcare organizations may be more open to outsourcing options. Furthermore, with the financial challenges many hospitals are facing, now is the time to pursue what for the healthcare industry may feel like an out-of-the-box solution, but has been embraced by many other industries as a viable and profitable way of doing business.

 Outsourcing allows your organization to pay only for the expertise they need.Like with utilities, you only need the amount of electricity you use, not an entire power plant. Most outsourcing companies offer flexible packages, allowing you to start small (and much more affordably), and expand or contract the project or hours as needed.

 For hospitals that only hire in-house, one employee leaving or taking extended time off can put an entire program or department at risk.Outsourcing frees your organization from being dependent on a single individual to reach its goals. In fact, outsourcing companies usually have a team of experts on call. Furthermore, when you contract outside your organization, you open yourself up to talent and expertise outside your geographical area.

 Hiring employees and providing benefits, training, and the space and equipment necessary for them to do their job is expensive—especially if the job really only requires a few hours per week. Outsourcing gives companies access to up-to-date knowledge without the expenses that come with an in-house hire. Purchasing a slice of expertise could be a 

 to bringing services internally, but will give your organization the opportunity to discern whether an in-house operation is necessary.

Steps to make outsourcing work for your organization

 be a great fit for your organization’s needs, but it’s not one-size-fits-all. Consider your 

 regarding costs and budget, expertise, team dynamics, control and access to information, continuity, and innovation, to name a few.

Ensure customer and vendor needs and expectations are aligned.

processes you are outsourcing are well-defined

 with clear expectations. Communication is the key to making the relationship a success for both parties. Additionally, take necessary precautions to understand how the vendor protects the 

 they may acquire for your organization, and what happens to that information when your contract comes to a close.

 As Ralph Burns, senior solutions engineer for Harris Affinity, says: Vendors should be “a valued partner, not a line item on an expense report.

Enter into an outsourcing partnership looking to add value for the vendor you’re working with, not just for your organization. You and the outsourcing company you hire are trying to 

 and are working toward the same goal. Outsourcing can and should be a mutually beneficial relationship.

Pamela J. Gallagher is a senior healthcare finance executive with 20 years of experience balancing the reality of finance with the delivery of excellent patient care. As a consultant she instills financial discipline, streamlines processes to maximize revenue, and reduces expenses for immediate improvements and long-term results.

Articles

In recent decades, many companies have adopted the maxim, “Do what you do best, and outsource the rest.” From the ability to focus on the core of their business to gaining outside expertise to boosting their quality of service, there are many reasons outsourcing may be appealing to an organization.

Outsourcing: Healthcare’s ‘Out-of-the-Box’ Solution

Hiring an interim executive has long been thought of as a band-aid solution on the heels of an unexpected resignation or a way to give a potential new leader a trial run before committing. But with more businesses and health organizations taking on flexible staffing approaches combined with the ups and downs of the economy over the past 15 years, companies have realized the financial and strategic benefits of engaging an interim executive rather than seeking to make an immediate permanent hire.

In the current COVID crisis, businesses are dealing with extreme levels of uncertainty and unpredictability as they try to make wise decisions for their employees and the future of their organizations. The high-flexibility, high-expertise nature of interim executives makes them an especially viable solution in times of crisis to keep companies moving forward strategically yet cost-effectively.

In times of crisis, three benefits of engaging interim executives stand out:

1. Avoid an unsustainable long-term commitment

With the economic turbulence brought on by the pandemic, many businesses aren’t sure what the next year will hold. Financially, this is a risky time to hire a full-time employee (plus benefits). From a workplace culture perspective, it is a gamble for companies and prospective executives alike to bring on a new hire without being able to meet in person to get a sense of culture and personality fit.

On the other hand, it’s hard to sail a company through rough waters with gaping holes in the leadership structure. So, what is a company to do? An interim is adept at stepping into crisis situations, getting caught up to speed quickly, and keeping the organization focused on their goals without all the risks of making a permanent hire in sub-optimal conditions.

When an interim executive joins a company, they aren’t there to take over someone’s job. Their mission is to lend support and assistance and breathe some new life into the company with fresh perspectives and solutions. The transfer of knowledge from interim to employees has the ability to make the entire staff better, sharper, and more adaptable for coming challenges. Additionally, an interim is able to give an unbiased opinion in a way that a new hire is not. An interim is invested fully in the work, but isn’t as likely to get tied up in organizational politics.

Often, interims are brought in to support a company while an executive is on personal or family leave. With so many employees suddenly becoming teachers in addition to their roles as parents, the need for gap coverage is higher than ever. Companies have a unique opportunity to make good on their value of putting their people first by engaging interim leaders to keep all the plates spinning while employees take the time they need to invest in their kids’ education.

When current employees and executives are already working at maximum capacity, special projects are often considered important, but not urgent. These projects continue to get put on the backburner, often to the long-term detriment of the health of the organization or the satisfaction of their employees. Bringing an interim executive on to tackle a specialty project allows your people to stay focused on the essential work they’re already doing without the pressure and stress of taking on an additional project.

In uncertain times, effective, expert leadership is crucial.Companies can access the knowledge and support they need without the financial strain from unwise long-term commitments by trusting an interim executive to help keep the organization moving forward.

Pamela J. Gallagher

Articles

Outsourcing: Healthcare’s ‘Out-of-the-Box’ Solution

Interims Keep Health Orgs, Companies Moving Forward During Times of Crisis