Elements of Successful Outsourcing

Has it ever occurred to you to equate outsourcing with Maslow’s hierarchy of needs? It had not occurred to me either until I read an excellent post by Kate Vitasek, architect of the “Vested Business Model” who is also a professor at the University of Tennessee.

Abraham Maslow, the founder of humanistic psychology, defined the hierarchy of needs something like this: human beings are motivated by unsatisfied needs and certain lower needs must be satisfied before higher needs can be addressed. The hierarchy of needs pyramid starts with physiological needs at the base, then moves up to safety needs, social needs and esteem needs. The fulfillment of those needs is what leads to self-actualization.

Is your outsourcing relationship self-actualized?

In a nutshell, here is Vitasek’s comparison to outsourcing.

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If it’s not your core competency: Outsource it

This third installment stemming from the round table discussion with supply chain leaders that MedSpeed recently hosted is focused on outsourcing.

In our session, participants reiterated what we have heard in previous discussions: healthcare is their specialty, not transportation. Operating an in-house courier network or managing multiple third party couriers steals valuable time and resources from a health system’s ability to focus on its core competency of high quality patient care. Moreover, the shift towards outsourcing in order to become more nimble and to more effectively manage resources is thematically applicable to other non-core functions within the health system.

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Transportation Steps into the National Healthcare Spotlight

Earlier this month in Healthcare Finance News, an article called “8 kinds of waste driving healthcare costs” really caught my attention. I was pleased to see that healthcare transportation has become part of the national healthcare dialogue. Marc Hafer, author of the book Simpler Healthcare, shared his views on eight different areas that could “inhibit patient flow, add cost, increase poor quality and infection and decrease patient and clinician satisfaction.”

First on the list: “transportation.” We know from our discussions with healthcare supply chain managers that transportation is not a core competency of healthcare systems or providers. But, while many organizations outsource many other areas (laundry, food service, EMS), a large number continue to retain their own transportation operations, often with minimal technology for tracking.

But perhaps the tide is turning.

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