case study - outsourcing of the hospital

8/10/2019 Case Study - Outsourcing of the Hospital

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Case Study 1

Case Study of Week 3rd

Outsourcing of Hospitals

Bishnu Dhamala

MGT 620 Operations Management & Supply Chain

July 20, 2014


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Case Study 2

Introduction

Due to financial pressures that many hospitals faces the deaconess clinic in billings,

Montana, decided to outsource a number of service, although in somewhat different ways.

First, the hospital outsourced its cafeteria food service although the food service

employees were hired by the outside firs, they still felt a sense of ownership of their jobs, and

still felt connected to the hospital because of the family atmosphere in the kitchen and the

cafeteria.

When the hospital tried the same thing with housekeeping employee turnover became a

problem. An investigation revealed that because the housekeeping employee was more isolated

in their work, they lost what little feeling oe being connected to the hospital they had. The

problem was solved by hiring the employees back but using the outsource company to manage

housekeeping.

The hospital also decided to outsource its laundry service. This time the hospital approached a

rival hospital about joining it in out sourcing laundry services.

Evaluation/ Analysis

In business, outsourcing is the contracting out of a business process to a third-party. The term

outsourcing became popular in the United States near the turn of the 21stcentury. Outsourcing

sometimes involves transferring employees and assets from one firm to another, but not always.

Outsourcing is also used to describe the practice of handling over control of public service to for Profit

Corporation. It includes both foreign and domestic contracting, and sometimes includes off shoring or

relocating a business function to another country. Financial saving from lower international labor rates is

a big motivation for outsourcing/off shoring.


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Case Study 3

Outsourcing is the act of one company contracting with another company to provide

services that might otherwise be performed by in-house employees. Often the tasks that are

outsourced could be performed by the company itself, but in many cases there are financial

advantages that come from outsourcing.

QN-1/QN-2/QN-3

Many large companies now outsource jobs such as call center services, e-mail services, and

payroll. These jobs are handled by separate companies that specialize in each service, and are

often located overseas. In that situation, Deacon Clinic is willing to outsource its laundry service

to the rivaling firm. There are different kinds of advantage; some of the key are as follows:

Better Risk administration

Increasing in-house competence

Run your business 24*7*365 that

Conscription Flexibility

To sustain in the competitive edge

They may have intent to destroy the goodwill of the Deacon clinic so that they could get

higher number of patient in their clinic and maintain monopoly.

A kind of strong bonding had been already developed so that sense of pledge and

ownership in the jobs increases. Similarly, they felt associated to each and every part of hospitals

because of the family atmosphere in the kitchen, cafeteria and other necessary department. Here,

the Money cant be a primary issue which can create disturbances in the clinic. As I think it is the


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Case Study 4

best idea to outsource the laundry services to other hospital and clearly informed government and

patient about these issues.

Definitely this will be able to save the Deaconess Clinic from all issue that is arising

regarding the harmful diseases,bacterias and so on.

Laundering practices were insufficient for removing potentially harmful bacteria from

reusable cloth and microfiber towels commonly used to clean hospital rooms.

Of the total number of soak buckets containing disinfectant, 67 percent contained viable

bacteria.

Conclusion

Here normally, outsourcing is the act of one company contracting with another company to

provide services that might otherwise be performed by in-house employee. There are many

reasons that companies outsource various jobs, but the most prominent advantage seems to be

the fact that it often saves money. Many of the companies that provide outsourcing services are

able to do the work for considerably less money, as they dont have to provide benefits to their

workers and have fewer overhead expenses to worry about. Thus, different component of the

company to whom we are going to outsource our work need to be examined so that they can

provide best services to our customer and in coming future the goodwill of the company will too

maintain.


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Case Study 5

References

Stevenson, W. (2009). Operation Management(10th ed.). McGraw-Hill Irwin .

William, J. S. (n.d.). Operations Management, Ninth Edition.

case study - outsourcing of the hospital

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