Hospitals outsource services to save money

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As healthcare slowly bounces back from the weak economy, hospitals face continuing financial struggles. Hospitals and health systems are no exception to the controversial strategy of outsourcing services to save on costs that other industries face, choosing to move their food services, housekeeping, and even security out of house.

For example, Danbury (Conn.) Hospital hired Morrison Management Specialists to operate all of its food services, including patient and cafeteria meals, reports the Danbury News-Times.

"It allows the hospitals to concentrate on their core business, healing people," said Robert Finelli, Morrison's vice president for the Northeast region. "Food and nutrition is our core business," he said.

The outsourcing will save $1 million a year. The hospital's 125 food service workers will be offered jobs with the food services company at the same pay, although officials did not say whether there would be changes to their benefits or seniority, according to the article.

Similarly, hoping to save $425,000 to $450,000 during the next fiscal year, hospital leaders at Johnston Health in North Carolina are considering outsourcing food and janitorial services to a private company, reports The Herald. Administrators are proposing a new budget that affects 100 employee positions, although the CEO assures them that there will be no layoffs.

At its La Quinta and Palm Springs health centers, Eisenhower Medical Center in California has outsourced security staff and housekeeping services, after facing losses of $31 million last year, reports The Desert Sun.

For more information:
- read the Danbury News-Times article
- here's The Herald article
- check out The Desert Sun article

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