The rising importance of insourcing in healthcare is intricately linked to a confluence of factors such as workforce shortages, financial constraints, and the imperative for enhanced patient care and outcomes. Faced with a global increase in demand for healthcare professionals and a projection of continuous workforce gaps, insourcing becomes a strategic solution, supplementing existing staff to expand healthcare delivery capabilities. This approach was particularly critical during health crises like the COVID-19 pandemic, showcasing its effectiveness in bridging staffing shortfalls. Concurrently, insourcing addresses financial challenges in the healthcare sector by offering a cost-effective alternative to traditional staffing models, enabling healthcare facilities to have greater control over clinical services, thus potentially leading to efficient operations and long-term savings. This strategy not only aids in managing financial pressures but also plays a pivotal role in elevating patient care, as it facilitates improved patient engagement and outcomes through more personalised and efficient healthcare services.
Workforce Shortages and the Role of Insourcing
The global healthcare sector is experiencing a significant workforce shortage, projected to continue into the 2030s. England, for instance, is expected to require an additional 475,000 healthcare jobs by the 2030s. Insourced healthcare staff are providing essential support by augmenting the capacity of traditional healthcare providers. This approach allows more patients to access the care they need, particularly during times when staff shortages are exacerbated, such as the COVID-19 pandemic. However, the practice of employing insourced staff on short contracts and at remote locations has led to low retention due to long travel times and higher accommodation costs.
Improving Healthcare through Insourcing
To maximise the benefits of insourcing, organisations should focus on best-practice knowledge sharing, training, and integration. For instance, at Remedy Healthcare Solutions, resources are dedicated to training existing staff within a Trust, enhancing integration between the Trust’s team and insourced staff. This approach not only improves efficiency but also builds long-term resilience within the workforce. Such measures reduce the burden on healthcare workers, create an environment where insourced staff can seamlessly support existing staff, and optimise efficiency for better patient outcomes.
Financial and Operational Considerations
From a financial perspective, insourcing often appears attractive to healthcare facilities seeking to control clinical services and generate long-term cost savings. However, it’s important for decision-makers to fully understand the financial and operational necessities associated with operating a physician enterprise. This includes considering expenses like recruiting, credentialing, onboarding, professional liability insurance, revenue cycle management, and patient safety/quality/risk organisations.
Case Studies in Insourcing
An example of successful insourcing can be seen in a community health plan created to provide high-quality, low-cost care to uninsured residents. The plan faced financial struggles and membership loss, leading to a decision to insource significant operational functions. This strategic move, supported by consultants like Change Healthcare, resulted in increased membership and revenue, showcasing how insourcing can lead to a remarkable turnaround when executed effectively.
Care Coordination: Insourcing vs. Outsourcing
In healthcare, insourcing care coordination means organising patient care activities within the organisation itself. This approach enhances control over patient care, strengthens relationships with patients, and can open new revenue streams. Additionally, it boosts staff engagement and morale, as staff are directly involved in patient care processes.
However, insourcing care coordination requires significant upfront investment, particularly in technology and possibly in hiring new staff. It also involves time and resources for training existing staff. Despite these initial costs and the longer time needed to implement insourcing compared to outsourcing, the long-term benefits for patient care and organisational efficiency often make it a worthwhile approach
Insourcing in NHS Trusts
In the UK, insourcing has become a preferred option for NHS Trusts, mainly because it offers a flexible solution for managing patient waiting lists during periods of increased demand. Insourcing in NHS trusts often involves contracting with suppliers to use the trust’s facilities and equipment for medical services, helping reduce waiting backlogs and enhance patient experience.
Conclusion
In summary, the rising importance of insourcing in healthcare, while offering benefits such as improved patient care, cost savings, and local employment, also necessitates careful evaluation of its impact on workforce dynamics, financial sustainability, and operational efficiency. Insourcing can address workforce shortages, as highlighted during the COVID-19 pandemic, but faces challenges like low retention due to short-term contracts and increased travel for staff. It requires dedicated training and integration efforts to optimise efficiency and patient outcomes. Financially, insourcing can be cost-effective if existing capabilities are utilised, but may be more expensive than outsourcing when new capacities are needed. Employee stress and decreased efficiency are potential risks, particularly if insourcing increases existing responsibilities. Moreover, while it can enhance customer satisfaction and reputation, insourcing demands balancing focus and workload to avoid overburdening the existing team. Therefore, healthcare organisations must weigh these factors carefully to choose between insourcing and outsourcing, aligning their decision with their specific needs and goals.