Healthcare administration is notoriously inefficient, mired in patient data and
red tape. As the cost of care and rising patient demand strain resources to the
breaking point, medical institutions are seeking ways to streamline operations.
Human resources outsourcing offers an important resource in this battle.
For an industry so dependent on data management and bureaucratic red tape
(think insurance billing), its surprising that the medical establishment has
been so slow to take up outsourcing. Medical institutions represent fewer than
five percent of outsourced
HR clients. According to industry analysts, however,
its only a matter of time before staff shortages drive institutions to seek
outside help. andquot;Its axiomatic that outsourcing needs to be part of the
equation hospitals and other institutions consider,andquot; says Dr. Jeff Bauer,
healthcare andquot;futuristandquot; at business services provider ACS.
Opportunities for Outsourcing
Outsourcing has been slow to gain traction in the medical sector in part because
of the tactile nature of the profession--for the most part, medical care
requires local delivery. Back office functions, however, are readily outsourceable.
With respect to patient administration, outsourcing services include:
Insurance claim processing
Admissions and discharges
Patient records management
Third-party providers also offer the following workforce administration services:
Payroll administration
Benefits enrollment and administration
Recruitment
Absence management
Tracking flexible-schedule and temporary workers
HR Recruitment Process Outsourcing
Recruitment is among the highest-value outsourcing
services for the healthcare
market. After all, a shortage of qualified workers is one of the most serious
problems facing the medical industry. Third-party recruitment, or Recruitment
Process Outsourcing (RPO), claims Jeff Bauer, can help reduce costs,
improve candidate quality, speed up the time it takes to fill vacancies,
and even improve retention. RPO providers have the experience and contacts
to conduct an efficient and effective talent search, freeing up internal
HR staff to conduct the higher-level vetting of candidates.
Outsourcing Solutions for Data Management
The Holy Grail for administrative efficiency is an integrated data environment.
The goal of a universal patient database is to lower costs and improve the
quality and reliability of care. But even strictly HR-related functions could
realize significant gains from effective data management. HR director Renee
Tehi points out that many healthcare facilities maintain multiple locations
and need to track employee attendance across all of them. A standardized
tracking system streamlines payroll and attendance accounting and ensures
compliance with leave, disability, and other administrative details.
In a time of limited resources, human
resource outsourcing represents an ace
in the hole for the healthcare industry. Terrence McCrossan of ADP, a professional
services provider, defines the challenge ahead for healthcare administrators:
The single biggest issue any healthcare administrator will face is how to
transform
and innovate while maintaining or even reducing the total operating cost to
the organization. Human
resources outsourcing offers a viable means of
increasing efficiency while cutting costs.
Sources
HRO Association
Future
Healthcare
Increase Text Size
Decrease Text Size
