As healthcare continues to evolve—shaped by rapid technological innovation, workforce challenges, and shifting patient expectations—hospitals and health systems must strike a careful balance between financial sustainability and delivering exceptional patient outcomes. In my ongoing conversations with healthcare executives, one topic continues to surface with urgency: whether to directly employ clinicians for key hospital-based services or to partner with a strategic organization that can deliver clinical expertise, operational efficiency, and scalable support.
Outsourcing Partnerships
Outsourcing partnerships involve collaboration between a healthcare facility or health system and a clinical services provider, such as TeamHealth, to deliver key services. For example, hospitals may partner to provide coverage in the emergency department, inpatient floors, anesthesiology, emergent obstetrical cases, acute surgical care, and more. Post-acute care facilities may partner with a clinical services provider for physician and advanced practice clinician coverage of their primary care or behavioral health needs, or in some cases, specialty coverage such as cardiology, wound care, or pulmonology. When partnering with a national clinical services provider, facilities and systems may also benefit from innovative solutions and integrated care that support seamless transitions across a range of settings and specialties.
Making the Decision
To insource or outsource is an important decision. The structure of clinical departments requires attention on all levels, as the smallest to the broadest aspects can have far-ranging impacts. Financial considerations are some of the most recognizable and usually get the most deliberation. Yet, there are many more factors to consider. Outsourcing partnerships can provide a level of service across the full spectrum of clinical, operational, and administrative support a healthcare facility needs.
Considerations for Outsourcing Clinical Services
Decision-makers in this space may feel that insourcing means more control over clinical departments and staff, which could translate to cost savings, among other perceived benefits. However, many may not consider all the layered work streams and associated direct/indirect costs associated with employing clinicians.
These considerations are much more than just financial necessities—from recruiting and human resources to operational programs and everything in between. Some of the vital areas to consider are:
- Administration of billing and coding: Do hospital teams have the dedicated education and infrastructure to effectively manage billing and coding responsibilities for professional services?
- Clinician well-being: Do teams have the well-being support and resources they need? Do they have the education they need to maintain wellness and work/life balance in an often stressful environment?
- Leadership development and recruitment: Do department leaders have clinical and operational support and guidance from peers in their specialty? Do facilities have the resources to recruit, retain, and provide leadership development opportunities for their clinical teams?
- Improvement and efficiency initiatives: Do teams need to make changes but lack the time or resources to effectively implement performance improvement projects? Is the facility facing a unique challenge that requires innovative solutions?
- Responding to change: Do facilities have the support they need in the evolving payer landscape? Do they have the resources and expertise to adapt to the value-based care environment effectively?
- Confronting an evolving landscape: Do teams have the methods to respond to the technological and reimbursement changes that help define an uncertain future?
Successful Clinical Services Partnerships
While the in-house approach may seem appealing, it can lead to many unnecessary burdens on facility leaders, added strains on resources, and hidden costs that may not always be factored into the decision. In our decades of experience, we’ve seen partners decide to insource, stepping away from our support, but we’ve also restarted successful collaboration with them once insourcing proves to be less fruitful than anticipated.
TeamHealth’s decades-long experience in successful strategic partnerships with leading hospitals and health systems means we have the tools, expertise, and commitment needed to successfully help operate high-quality, high-efficiency departments. These decisions are complex, but we’re here to help. Reach out to our team to learn more about partnering with TeamHealth.