Outsourcing and Teleradiology in Healthcare Industry

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Table of Contents

Introduction
Significance of the Study
Conceptual Discussion
Literature Review
Research Methodology
Results and Discussions
Conclusions and Recommendations
Works Cited

Introduction

Outsourcing is a strategy used by organizations to minimize costs by assigning different tasks to a number of third-party suppliers (Kremic, Tukel and Rom 469). This process is done to reduce expenses and acquire quality results from the right professionals. Some factors explain why healthcare institutions and companies outsource. An organization can acquire new products or services without purchasing expensive technologies. As well, the company can acquire new services and products within the shortest time possible. This scenario explains why healthcare facilities outsource specific services. A healthcare facility can use this concept to access advanced technologies such as radiology (Babic, Milosevic and Babic 146). Institutions that outsource new technologies find it easier to deal with competition and eventually deliver quality services to their clients. Outsourcing specific functions and activities makes it easier for firms to focus mainly on their core values (Guimaraes and Carvalho 142). A hospital will “achieve its goals without focusing on non-core business aspects” (Babic et al. 147). This project discusses the issues associated with outsourcing and teleradiology in healthcare.

Significance of the Study

In healthcare, outsourcing is undertaken to ensure more patients have access to various services that are expensive to deliver. This fact explains why fields such as nuclear medicine, oncology, radiology, and imaging have benefited a lot from outsourcing. This practice is usually undertaken by hospitals to reduce costs and deliver quality services to their patients. Outsourcing in healthcare can therefore take different shapes depending on the targeted objectives. Institutions can ensure their patients get timely medical support and treatment from third-party providers (Kremic et al. 471). As well, teleradiology has become a common practice because of the challenges affecting the healthcare sector. This new technology is embraced by many hospitals because it addresses the absence of specialized practitioners in radiology. Many healthcare practitioners are unable to offer adequate radiological services. This study will therefore outline the major advantages and advantages of outsourcing various medical technologies. The existing gaps and opportunities will also be highlighted in order to guide different healthcare facilities.

Conceptual Discussion

Several arguments are used to explain why healthcare institutions and companies outsource. As indicated earlier, outsourcing is a powerful approach towards reducing costs. For instance, a company can expand its operations without necessary incurring numerous costs. Hospitals can acquire specific products or services within purchasing expensive facilities. The second reason is that the process produces superior products. As well, the company can acquire new services and products within the shortest time possible. This scenario explains why healthcare facilities outsource specific services. Institutions can use this concept to access advanced technologies (Kremic et al. 474). Such institutions will find it easier to deal with competition and eventually deliver quality services to their clients. The purpose of this paper is to explain why outsourcing and teleradiology are critical fields in healthcare practice. The main argument is that outsourcing in healthcare is a practical strategy for minimizing costs and delivering quality support to patients.

Literature Review

Outsourcing

Outsourcing specific functions and practices makes it easier for firms to focus mainly on their core values (Kremic et al. 469). Such firms will “achieve their goals without necessarily focusing on different non-core business aspects” (Babic et al. 148). Institutions usually embrace the power of outsourcing depending on a number of situations. A specific service that might be costly to deliver to the targeted clients can be outsourced. As well, the outsourcing process should result in cost reductions. The absence of skilled personnel to complete a specific task encourages institutions to outsource. Activities that are “required but not embraced by many workers or stakeholders should also be outsourced” (Guimaraes and Carvalho 142).

Businesses and institutions cannot outsource every entrepreneurial function. Several considerations are critical whenever determining the major areas of outsourcing. For instance, technological services involving the use of radiology can be outsourced in order to reduce costs and offer exemplary services. The legal services required by an institution can also be outsourced. The firm can pay consultation fees and hire legal representatives. Firms can “outsource various operational aspects such as utilities, cleaning, product packaging, office supplies, and insurance” (Babic et al. 149). The targeted institution should therefore be aware of its goals before identifying the key areas and functions to be outsourced. Many firms also outsource recruitment services.

Outsourcing reduces time, manpower, and cost. Companies engaging in outsourcing remain flexible and profitable. Some technologies can be expensive to acquire. This situation makes outsourcing the best strategy towards getting specific services and products. Outsourced products tend to be superior in quality and can promote a company’s competitiveness (Babic et al. 148). This approach has also been observed to result in risk-sharing. Many companies and organizations embracing the practice reduce their operational costs by over 50 percent.

On the other hand, outsourcing has its share of drawbacks. Guimaraes and Carvalho believe that outsourcing can make it hard for business organizations to focus on the needs of their clients (143). The practice is also characterized by numerous bureaucracies such as contracts and laws. The third-party provider might delay the intended services. There are some hidden costs usually associated with the process. The practice also makes it easier for the outsourcing provider to acquire the company’s confidential data and information (Guimaraes and Carvalho 142). Any kind of negligence between the two parties can therefore result in information security threats. As well, the provider might not give the contract the attention it requires. These issues explain why businesses and firms should always identify the best outsourcing providers.

Outsourcing in Health Care

Some situations dictate when a hospital can outsource a specified service from a third-party provider. Some fields are characterized by high startup costs because of the technology equipment required. For instance, an institution providing oncology and dental services might not be able to afford the relevant medical equipment (Roberts et al. 3). That being the case, the hospital will outsource such services and ensure its clients receive the required medical support. Hospitals also embrace the concept when their machines or equipment fail to operate. Such equipment might take time to fix thus forcing the institution to outsource the required services (“Outsourcing in Healthcare” par. 1). This new field is making it easier for more patients to acquire appropriate services from different third-party providers.

Past studies indicate clearly that many hospitals are outsourcing a wide range of services in telemedicine and teleradiology. Such healthcare facilities have several arguments for engaging in these practices. The most important thing to understand is that healthcare businesses are not easy to expand. This is the case because the industry is characterized by expensive medical equipment and requirements (Guimaraes and Carvalho 146). The cost of equipment in telemedicine and teleradiology explain clearly why many institutions are unable to provide such services. However, some companies and facilities have emerged that have the potential to deliver some of these services. The unavailability of such healthcare services forces hospitals and facilities to outsource. Roberts et al. argue that “this new industry will deliver positive outcomes in the future because more patients will get adequate health support” (6).

Teleradiology

The current wave of technology-sharing has impacted the nature of medical practice. This fact explains why telemedicine has become a common field today. Teleradiology is therefore derived from the words radiology and telemedicine (Roberts et al. 4). Telemedicine is a field that focuses on the use of modern technological applications to transfer clinical data or information. Radiology, on the other hand, focuses on “the major technologies used in medicine to capture various body images for treatment or diagnosis” (Drnasin, Vucica and Tonkovic 73). Teleradiology is “a new field whereby such body images are collected and shared over a distance by medical practitioners in order to be interpreted for consultative or diagnostic purposes” (Drnasin et al. 73).

The absence of radiologists in many hospitals explains why this field has emerged. The emergence of this field makes it easier for institutions to share their images with different radiologists. The specialists acquire the image and make the relevant diagnoses (Drnasin et al. 73). They relay the information back to the hospital in order to undertake the required medical procedures. The ultimate purpose of this technology is to ensure a specialist is consulted even when there is a distance barrier.

Research Methodology

In order to get the best results, a number of articles were identified throughout the study. Several case studies detailing the benefits of outsourcing in healthcare were also studied (Roberts et al. 4). The targeted health institutions were in Russia, India, and the United States. A qualitative study was also undertaken by consulting different publications. This study presented new ideas that can support the importance of properly-managed outsourcing for various healthcare technologies.

Results and Discussions

This study has indicated that small clinics, upcoming healthcare centers, and hospitals are currently outsourcing a wide range of services. Laboratory services providers are also being outsourced. A small number of facilities have managed to purchase such equipment. This scenario has made it possible for different hospitals to collaborate with different facilities in an attempt to secure the best services for their patients. As well, some third-party companies are providing a wide range of services and technological support systems in order to improve the quality of care available to the targeted clients (“Outsourcing in Healthcare” par. 2). Large hospitals have been identifying new measures to purchase the required equipment. This move has continued to reshape the performance of the healthcare industry by ensuring that more people have access to superior health services.

Many healthcare institutions have managed to outsource different medical services. For example, Pushpanjali Crosslay Hospital in India has partnered with Galaxy Cancer Institute in order to provide quality services to its patients (“Outsourcing in Healthcare” par. 3). Mid Essex Hospital Services NHS Trust has also partnered with INVERTO in the area of Trauma and reconstructive orthopedics (Babic et al. 148). This outsourcing approach had reduced costs for the institutions while at the same time improving the quality of services availed to different clients. These success stories should encourage more institutions to consider the practice. The important thing is to be aware of the existing challenges and focus on the best strategies that can deliver positive results.

Outsourcing providers in healthcare have revolutionized the nature of care in different regions. However, outsourcing in healthcare has posed a number of threats and risks. For instance, third-party vendors are allowed to monitor and manage confidential information (“Outsourcing in Healthcare” par. 1). This means that the institution has shared patients’ information with different parties. The confidentiality of this information therefore depends on the integrity of the provider. The information shared by these two actors is usually confidential. Any malpractice can make the information accessible to other unauthorized people. This risk is a major challenge affecting the healthcare industry. The outsourced service provider might also fail to deliver exemplary care to the patient. This means that the targeted patients will not receive the intended care thus damaging the image of the institution. The transfer of responsibility from the institution to the provider also discourages more healthcare workers (Roberts et al. 6). This situation makes it hard for them to deliver quality care.

As well, teleradiology has emerged as one of the modern methods of outsourcing. Hospitals without competent radiologists can capture quality images and share them with different professionals. The high-resolution images are then transmitted to the consultant for appropriate analysis and diagnosis. The use of this technology makes it easier for hospitals to acquire scarce services from different professionals (Roberts et al. 5). Institutions embracing the power of teleradiology therefore have the potential to support the health needs of their patients. The medical practitioners in the institution also find it easier to focus on the other health issues affecting their patients. The implementation of this technology for a small hospital or healthcare facility can be costly. As well, competent technologists should be hired. Medical facilities and hospitals embracing the use of teleradiology can deliver quality services to their patients without incurring numerous expenses. This fact explains why more institutions will acquire the technology in the future.

A study conducted by the European Society of Radiology (ESR) in 2014 indicated that the use of teleradiology had brought numerous opportunities to many institutions (Badshah et al. 9). As well, more patients were able to receive timely healthcare services. Another study conducted in Russia indicated that the country had recorded positive outcomes after implementing the use of teleradiology. Similar accomplishments have been observed in the United States (Badshah et al. 12). The technology has devolved radiological services in the country. On the other hand, some tele-radiology programs have been unsuccessful. A similar project initiated in “the Limpopo Province in South Africa failed due to the complexities associated with tele-radiology” (Mohd-nor 90). The cost of the project was over 14 million pounds (Mohd-nor 92).

However, the field of teleradiology has been associated with a number of issues and risks. This happens to be the case because one party shares confidential information and images with another one. Any form of breach or system failure can jeopardize the privacy of the affected patients. This risk calls for proper policies in order to maintain the highest level of privacy. The “integrity of the radiologists working in the hospital also dictates the nature of risks facing the transferred images” (Drnasin et al. 74). These issues should therefore be considered in order to support the rights and needs of more clients.

Conclusions and Recommendations

Outsourcing is a complex process characterized by a number of disadvantages and advantages. That being the case, business organizations should be aware of certain advantages and bottlenecks before embracing the practice. This process is beneficial because it makes it possible for healthcare institutions to concentrate on their objectives (Roberts et al. 7). Healthcare facilities engaging in this practice should use various strategies to reduce these risks. For example, institutions should ensure the electronic information shared between the parties is secure. A contract should be signed between the provider and the hospital in order to reduce the anticipated risks. A “performance standard should also be used before signing the agreement” (Roberts et al. 4). The contract signed by the parties should have appropriate terms and conditions (Drnasin et al. 73). This approach will ensure the service provider embraces the best practices and focuses on the needs of every patient.

A hospital that plans to use teleradiology should consider various issues. The institution should begin by considering the appropriateness of its technological infrastructure. Such radiological images should be of the highest quality (Drnasin et al. 75). This means that the institution should have the required infrastructure before going to teleradiology. The hospital should also employ skilled personnel in order to use the infrastructure. The facility should also have the required quality assurance (QA) team. The role of this team is to monitor every activity and ensure the captured images meet the required criteria. As well, the hospital should make appropriate consultations with the selected radiological company. This knowledge will make it easier for the facility to acquire the right personnel and technologies before initiating the contract. The institution should also be able to address the health issues affecting the patients after the images have been analyzed. This means that the workers and caregivers in the hospital should be able to offer evidence-based care and support the clients. The service providers should possess the required expertise (Drnasin et al. 76). The most critical thing is to ensure every patient gets quality and timely support. A contract should also be signed in order to promote the highest level of confidentiality.

Teleradiology is a powerful practice that makes it possible for small healthcare institutions to offer quality services. This technology is a necessity for small hospitals with inadequate radiologists (Babic et al. 150). As well, the practice makes it possible for physicians to compare two or more interpretations. Radiologists can also offer their services to many patients in different parts of the world without having to travel. The field has also become a powerful educational device. The information and observations obtained from teleradiology can be used to improve different aspects of healthcare practice.

Some challenges have also been associated with this new field. For instance, billing issues and reimbursement problems have become critical aspects of teleradiology. Images requiring immediate interpretation might not receive the required attention. Some risks and privacy concerns have also surrounded the use of teleradiology. The “initial startup costs incurred whenever setting a teleradiology station make the services unavailable in different regions” (Drnasin et al. 74). In conclusion, experts argue that the continued use of teleradiology will ensure more diverse populations acquire the best services. This project shows conclusively that teleradiology is a promising field. Policymakers in healthcare should address the above bottlenecks in order to support the needs of more stakeholders.

Works Cited

Babic, Rade, Zoran Milosevic and Gordana Babic. “Teleradiology: Radiology at Distance.” Acta Facultatis Medicae Naissensis 29.3 (2012): 145-151. Print.

Badshah, Gran, Siau-Chuin Liew, Jasni Zain and Mushtaq Ali. “Watermarking of ultrasound medical images in teleradiology using compressed watermark.” Journal of Medical Imaging 3.1 (2016): 1-24. Print.

Drnasin, Ivan, Domagoj Vucica and Stanko Tonkovic. “Success of Teleradiology as a Confirmation of Radiological Excellence.” ITI 1.1 (2009): 73-77. Print.

Guimaraes, Cristina and Jose Carvalho. “Outsourcing in the Healthcare Sector: A State-of-the-Art Review.” Supply Chain Forum 12.1 (2011): 140-148. Print.

Kremic, Tibor, Oya Tukel and Walter Rom. “Outsourcing decision support: a survey of benefits, risks, and decision factors.” Supply Chain Management: An International Journal 11.6 (2006): 467-482. Print.

Mohd-nor, Rohaya. “Medical Imaging Trends and Implementation: Issues and Challenges for Developing Countries.” Journal of Health Informatics in Developing Countries 1.1 (2011): 89-98. Print.

Outsourcing in Healthcare 2011. Web.

Roberts, Jeremy, John Henderson, Larry Olive and Daniel Obaka. “A Review of Outsourcing of Services in Health Care Organizations.” IBIMA Publishing 1.3 (2013): 1-10. Print.

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