3 Ways Outsourcing Can Help Your Hospital's Financial Performance

Posted on Thu, Aug 13, 2015
3 Ways Outsourcing Can Help Your Hospital's Financial Performance

The business case for outsourcing ED physician services at hospitals with 20,000 annual ED visits or fewer.

By Mark McGrew, MBA
If you run a low-volume, rural, specialty or a critical access hospital, you may think that outsourcing emergency department management services is not a viable option. You have challenges that larger organizations will not understand. Resources are tight, and you can’t afford to spend money on extra services. Bringing in an outside company will just make the system more complicated. The list goes on and on in the minds of many hospital administrators who run these facilities.
The reality is that many hospitals in this situation have discovered a strong business case for outsourcing their ED professional services.  Specialization in this field has led to efficiencies that result in an undeniable value. Often the knowledge and experience of the leadership and operational personnel of an organization specializing in ED management can help a hospital improve the quality of care, and reduce both costs and risk. Incentive clauses are often built into mutual goals. Improving patient safety and the hospital’s reputation also results from a strong partnership with an outsourcing arrangement. Having an ED group that has the resources to make improvements and, therefore, is willing to share the risk can be a huge relief for lower-volume hospitals.
A national ED practice management group can provide a great value by consolidating costs associated with running the ED, such as recruiting, scheduling, malpractice insurance, and patient billing. Practice management groups also have experts in assisting rural and low-volume hospitals with services such as operational analysis, patient satisfaction training, and risk management evaluation. These groups are led and advised by experienced physicians, nursing leaders and tenured business professionals who can navigate the ever-changing healthcare industry.
Ways Outsourcing May Improve Financial Performance
1.  Reduces Costs

  • Benefits similar to that of a group purchasing organization can be achieved at the local level by leveraging the size of the national organization 
  • Save money through economies of scale with leadership and oversight, recruiting, billing, risk mitigation, training (clinical, patient satisfaction, leadership development) 
  • Clusters of hospital customers for recruiting -- shared staffing provides larger pool of providers who are well versed in common processes and goals of the ED Practice Management group 

2.  Improves Service/Stimulates Growth 
  • Promotes the value of quality care closer to home by putting patient safety, patient experience and continuity of care as the top priority 
  • Improving overall quality and reputation through practice of competent clinicians who are aligned with patient care goals and with access to state-of-the-art patient experience tactics and strategies 

3.  Decreases Stress on Internal Resources
  • Centralized credentialing and physician billing, dedicated recruiting, med mal, professional fee coding and billing
  • Strong collections process
  • Onsite experienced physician leadership supported by national experts

Comparison of ED Management Options


Are You Ready For Outsourcing?
Outsourcing is a big step, but it can be easier and quicker to enact than you might think. If you have any of these issues, you could be operating at greater efficiency with strong local practice in 90 days or less.

Identified Challenges:
  • Provider reimbursement
  • Order sets and value-based purchasing measures
  • Throughput, ED boarding, process improvement, the Joint Commission and DNV Healthcare surveys
  • Reputation
  • Practice stability 
  • Leadership and staff buy-in
  • A clear understanding of your metric goals/key performance indicators (KPI)
  • Defined success for an outsourcing partnership
  • Receptive to Lean methods and standardization of processes
  • A desire for patient-centered care and continuous quality improvement 

Frequently Asked Questions About Outsourcing
Q. What are the risks of outsourcing?
A. Perceived loss of control, but with an appropriate agreement, shared risk and defined goals and objectives can be achieved.
Q. What are some of the reasons hospitals outsource?
A. Challenges in recruiting and managing physicians; larger pool of physicians to staff ED; professional fee billing expertise.
Q. What resources could I expect to leverage from a national business partner in physician staffing and practice management?
A. Clinical oversight; professional fee billing experience and expertise; improved patient satisfaction; experienced physician oversight and management; and access to best practices.
Q. What if I like my current physicians but need more resources and training support?
The benefits of outsourcing ED practice management does not necessitate a change in your current physician staff. Ask for a program that complements your existing medical staff by providing resources not currently available to help the practice be more successful.

For example, EmCare offers customized services for rural, lower-volume, specialty and critical access hospitals. Options include:
  • Incorporating employed physicians without changing current agreements and compensation based on hospital preference
  • Seamlessly providing coverage support with EmCare-affiliated physicians to fill open positions and seasonal needs versus costly locum tenens coverage
  • Integrated ED and hospitalist services
  • Patient satisfaction improvement programs and preparation for ED PECS using smart devices (phones and tablets) at the bedside for real-time patient satisfaction surveys and reporting
  • Professional fee billing (that incorporates existing providers also) to help reduce the hospital’s net operating costs of emergency department, hospitalist or anesthesiology coverage
  • Dedicated provider education resources for compliance, EMTALA and risk management
  • Emergency Department flow and metric improvement with Lean-certified nursing consultants
  • Electronic medical record implementation, support, and ongoing documentation training 

Visit the Solutions Section of EmCare's website to learn how we can help you solve your challenges - together.

Mark McGrew

Mark McGrew, MBA, is the Regional Client Administrator, EmCare Physician Services. Mark has been in emergency department operations for nearly a decade. He is responsible for more than 40 rural clients in more than a half-dozen states. He is focused on delivering quality healthcare support to client hospitals, physicians and the communities they serve.

Alisa Addison
Thanks for sharing the post. This blog is very informative as it describes the importance of healthcare outsourcing. Healthcare bpo would help healthcare industry to solve problems like manage aged account follow-up, identify problem payer categories, assess complete accounts receivable etc.
9/7/2015 6:05:24 AM