D'Arcy Gue


Black Book: Phoenix Rated #1 in Hospital IT Outsourcing for the Second Year Running

June 20, 2018


Healthcare Industry, IT Outsourcing, Press Releases 3 Minute Read

For the second year in a row, Phoenix Health Systems has been recognized by healthcare market research firm Black Book Research as first among the nation’s hospital IT outsourcing companies for customer satisfaction and experience.

Expanding upon its September 2017 Survey, Black Book increased the total number of responding hospital executives and managers to 4,595 for its May 2018 report. They were asked to assess their confidence in partnering with outside support contractors in various specialties and to determine which partners they found the most professional and reliable using several key performance indicators. Phoenix Health Systems was ranked first in the study’s category of Hospital IT Department Outsourcing services.

Go here to see the full details in the Phoenix Health Systems Press Release.

Or read on for more news from the May 2018 Black Book Report.

Black Book has made a striking assertion based on its research: by 2022, average hospital costs must be reduced by 24% to break even. Black Book thinks outsourcing may be a solution.

Apparently, the vast majority of hospital leaders agree. Ninety-eight percent of hospital leaders are either already working with third-party outsourcing vendors or considering doing so for cost-efficiencies in both clinical and nonclinical functions. Outsourcing strategies are seen as a cost-saving way to bring specialized expertise to the table and allow hospitals to focus on value-based programs. In a great improvement over last year’s report, in every outsourced services category surveyed, respondents reported that service levels had exceeded expectations in over 81% of all hospitals in 2017.

“Hundreds of outsourcing firms are creating a niche by specifically focusing on healthcare clients only,” said Doug Brown, President of Black Book Research LLC. “As hospitals look for ways to reduce costs, outsourcing is a valid strategy to achieve a financially healthier organization. Caution should be given with the common pitfalls in healthcare when vetting or considering outsourcing.”

Outsourcing is very strong in non-clinical areas like IT, which has increased greatly over the last several years. But Black Book is now seeing that outsourcing has moved aggressively into the clinical arena. Brown said: “The opportunities to reduce clinical costs in the past were mainly limited to anesthesia and emergency medicine. But now, some hospitals are making the decision to actually enhance clinical product lines by outsourcing to power up volumes and improve health consumer satisfaction. Value-based care reforms have put pressure on hospitals to decrease inpatient volumes, achieve outcomes goals and provide cost-effective care. Clinical services outsourcing is the rage because it offers struggling hospitals with immediate alternatives.”

Overall, the May report reviewed 24 different outsourcing specialties — both clinical and non-clinical. These range from IT, Human Resources and Supply Chain — to Emergency Services, Anesthesia, Hospitalists and Physical Therapy — plus seventeen more.

Brown also noted that in the healthcare industry outsourcing doesn’t get the same “bad rap other sectors experience where negative stereotypes associated with offshoring and/or full function outsourcing were largely misinformed. Hospitals have developed an understanding of the broad spectrum of outsourcing options and how to manage vendors.”

Only 2% of respondents consider outsourcing an unthinkable option due to the anticipated reaction from staff, physicians and the communities served.

To learn more about Phoenix’ award-winning on-shore hospital  IT outsourcing strengths, contact us. Maybe it’s time to understand why we’re #1. And if you’re not outsourcing one or more IT functions, maybe you should learn if it will help your hospital. Our promise: we will not throw you to a wolf of a salesperson; we are honest and straightforward from day one.



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