Hospitals may outsource to cut costs in 2024, says Deloitte
NEW JERSEY, UNITED STATES — Deloitte U.S. Healthcare Leader Tina Wheeler expects more hospitals to outsource key functions in 2024 to address tight margins and rising expenses.
In an interview with the Chief Healthcare Executive, Wheeler said sending back-office tasks overseas could save major costs for struggling health systems.
Areas ripe for outsourcing include revenue cycle management, billing, claims processing, finance, human resources, and supply chain management. Functions like billing and coding can be complex and require specialized staff to maximize reimbursements.
However, Wheeler also recognized that outsourcing carries risks around the loss of operational control, data security, hidden costs, and community backlash over potential job losses.
She noted that hospitals must strike a “delicate balance between efficiency and community expectations” and carefully vet outsourcing partners to meet expectations.
The interview also spotlighted hospitals’ growing interest in artificial intelligence (AI) to predict mortality rates and the length of stay for patients.
Deloitte also projects an increase in mergers and acquisitions in the healthcare industry next year, as 33% of health system executives believe this would have a “great impact” on their 2024 strategies.
