IT Outsourcing Could Benefit Hospitals

Photo: Keys of a computer keyboard

Technology is expensive - teaming
up can help being modern at
affordable costs; © SXC

Patients expect the most up-to-date equipment and technology at hospitals, regardless of the institution's size or budget. Providing that technology, however, can be difficult for small, rural hospitals that often lack the budget and staffing to make it possible.

Madhu Reddy, assistant professor, Sandeep Purao, associate professor, and Mary Kelly, a graduate student, conducted interviews with administrators at a regional hospital and three small, rural hospitals in central Pennsylvania. The three smaller hospitals relied on the regional hospital to manage such things as software, laboratory information and technical support.

The researchers found that the smaller hospitals saw financial savings from the partnership and also benefitted from the shared IT staff and its experience. "The most prominent financial benefit for the rural hospitals was the ability to afford a comprehensive IT infrastructure at a relatively low price," Reddy said. "For instance, the rural hospitals only pay a percentage of the hardware dedicated to their needs. If the regional hospital buys a new hard drive, the rural hospitals will only be charged for the percentage of the hard drive they use."

The regional hospital did not profit from sharing its services, but the smaller hospitals did take on costs involved with the partnership and helped pay for the additional staffing required to make the relationship possible.

One of the challenges to this outsourcing system, the researchers found, was a perception among the small hospitals that their customer service requests were sometimes not a high priority for the regional hospital's IT staff. "They believed a traditional vendor would want to meet their needs in order to retain their business, but that was not always the case in the partnership," Reddy said. "However, as the partnership evolved over time, they were able to overcome this challenge."

MEDICA.de; Source: Penn State