In: Operations Management
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.