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Options in information systems outsourcing.

D H Freed1

  • 1Management Services, Hahnemann University.

Journal of Healthcare Materiel Management
|May 8, 1993
PubMed
Summary
This summary is machine-generated.

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Hospital information systems (IS) outsourcing offers resource optimization and cost savings but presents risks like loss of control and vendor dependence. Careful management is crucial for successful IS outsourcing in healthcare.

Area of Science:

  • Healthcare Management
  • Information Systems
  • Business Strategy

Background:

  • Hospital information systems (IS) operations are increasingly complex and costly.
  • Outsourcing IS functions presents a potential strategy for resource optimization.

Purpose of the Study:

  • To explore the strategic use of outsourcing for hospital information systems.
  • To identify the benefits and risks associated with IS outsourcing in healthcare.

Main Methods:

  • Analysis of IS outsourcing as a business strategy.
  • Examination of potential financial, tactical, and strategic goals achievable through outsourcing.
  • Identification of risks and challenges in IS outsourcing implementation.

Main Results:

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  • Outsourcing can lead to a smaller IS staff, reduced overhead, and cost avoidance, especially in capital equipment.
  • Potential risks include loss of control, vendor inexperience with hospital culture, and over-dependence on external providers.
  • Managing in-house personnel expectations is a key challenge.

Conclusions:

  • IS outsourcing is a viable strategy for hospitals to optimize resources and achieve financial goals.
  • Despite potential benefits, significant risks necessitate careful planning and management.
  • Given the rising costs and complexity, IS outsourcing appears inevitable in the healthcare sector.