Question

In: Operations Management

YOU WORK FOR AN HMO AS DIRECTOR OF INFORMATION SYSTEM DEPARTMENT YOUR ORGANZIATION IS CONSIDERING OFFSHORING...

YOU WORK FOR AN HMO AS DIRECTOR OF INFORMATION SYSTEM DEPARTMENT YOUR ORGANZIATION IS CONSIDERING OFFSHORING MEDICAL RECORDS PRCOCESSING A ND SOME MEDICAL SERVICES SUCH AS READING CHEST X-RAYS AND MAMOGRAMS TO AN ASIAN COUNTRY . THIS WILL HELP ORGANZIATION TO REDUCE ITS OPERATING COST BY AT LEAST A MILLION DOLLARS A YEAR BASED AN AN INTERNET STUDY AND REDUCE THE HEADCOUNT BY 10 THEE ACTION WILL IMPROVED THE HMO COST STRUCTURE ANDD ITS COMPETIVENESS IN THE INDUSTRY IF THE ORGANZIATION DECIDES TO OFFSHORE THESE SERVICES IT MUST SIGN A TEN YEAR CONTRACT NEXT WEEK YOU ARE INVITED TO ATTEND A MEETING TO DISCUSS THIS ACTION AND CONSIDER ITS ADVANTAGES ANDD DISADVANTAGES TO YOUR ORGNAZIATION WOULD YOU SUPPORT THIS DECSION WHY OR WY NOT.

Solutions

Expert Solution

I would not support the decision of outsourcing. Although it saves millions of dollars in a year by outsourcing, sensitive information of the patients is being exposed to the third party. It is very important to note that patients trust the hospital where they are being treated. Outsourcing the medical services literally means that the patient's privacy is being invaded.

Reducing the head count and outsourcing the medical services are some of the shortcuts to earn profits. On the other hand, it is also very important to save millions of dollars for the company. But, keeping up to the patient's expectations and at the same time keeping the promise of what hospital assures to its patients of their privacy, is a very important aspect altogether. Therefore, instead of saving on outsourcing, HMO should find ways in cost cutting in other areas.

If a hospital has to outsource medical services, it has to take a prior consent from the patient. If the patient is willing to share, then they can outsource. But, if they are not willing to, then they should'nt. Therefore, as a head of information system department, i would strictly be against outsourcing the medical services, which otherwise is a breach of law.


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