Outsourcing functions or centralizing them—sometimes under the umbrella of a new shared services organization—are two divergent strategies for achieving the same goals of cost savings and increased efficiency. In the service of ongoing research, the Advisory Board and the Financial Leadership Council would love to hear from you about your own experience with these strategies. Please take a moment to answer the following questions.
In the face of weak volume and price growth, many hospitals and health systems are realizing that sustained cost control efforts will be essential to maintain healthy margins and ensure long-term institutional viability. While changing the processes of care delivery—via care variation reduction, for example—presents enormous potential for cost reduction, many health system leaders are also looking at savings within the operational and administrative areas of spend.