Document Type

Closed Project

Publication Date

Fall 2005


Charles Weber

Course Title

Innovation Management

Course Number

EMGT 510


Hospitals and healthcare systems are facing increased financial difficulties because of the balanced budget and managed care. As a result healthcare executives face the challenge of reducing costs while maintaining Quality patient care. One of the innovative strategic tools healthcare executives use to meet this challenge is using the outsourcing. Outsource with others inside the country or overseas in core of essential competencies activities or just in an insignificant basic functions such as payroll, housekeeping services; food or laundry.

This is a big issue as we outsource our most complicated Industries and technologies why not outsource our health care and services. Although insurance companies have traditionally been slow adopters of outsourcing, However shrinking margins, higher claims disbursement and increasing competition have forced insurance companies to look at offshoring to improve efficiencies and focus resources towards the core functions of product development and innovation. Even though outsourcing has many benefits and competitive advantage outsourcing will fail if not managed successfully .With appropriate management strategic outsourcing should provide healthcare executive with a viable strategy for controlling costs and maintaining quality patient care. In this paper I will investigate what is outsourcing, the benefits and risks of outsourcing, the evaluation process and Assessment and how to make it success.

I intend to show that health care organizations could save a lot of money; Million of Dollars could be saved if health care has been outsourced and managed properly on overseas or inside the country in a much cheapest cost and good quality services.


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