August 22 - Effects of Healthcare Outsourcing

Improved efficiency, lower costs, and enhanced quality are some of the reasons industries like manufacturing have made outsourcing work overseas common practice. Healthcare providers have been slower to adopt; however, the practice is gaining momentum with advances in information technology, which permit some services to be provided remotely, according to an article in the August issue of the Journal of the American College of Radiology.

A 2003 U.S. Department of Labor Survey estimated that 13,000 U.S. workers were laid off between 1999 and 2003 due to outsourcing. While this practice may lead to lower costs, patients may not choose reduced prices in place of higher quality health care. On the other hand, the practice of medical tourism is increasingly gaining attention, as individuals travel overseas to undergo procedures at lower costs. According to the study’s authors, an angioplasty in the United States would cost a patient $57,262 to $82,711. The same procedure in India costs about $11,000. For radiology especially, the risk of outsourcing is high, but the authors advise healthcare organizations to continue providing innovative, quality services at lower costs to remain competitive with this emergent trend.

— Source: Journal of the American College of Radiology

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