Benefits of Outsourcing Services.docx - 1 Benefits of Outsourcing Services John H Mouw HCS\/370 Organizational Behavior Kelli Reid RN MSN 2 Benefits of

Benefits of Outsourcing Services.docx - 1 Benefits of...

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1 Benefits of Outsourcing Services John H. Mouw HCS/370 Organizational Behavior November 20, 2017 Kelli Reid, RN, MSN
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2 Benefits of Outsourcing Services As of recent, our more extensive competitor laboratory has closed operations thus changing the business environment for our small laboratory, Atwood Laboratories. This sudden increased need for our services, while great for business, has put an added strain on our current resources. One of our functional components less equipped to handle the sudden influx of specimens is in the billing area. Rather than increase the number of billing associates in the lab, outsourcing those tasks may be a wiser alternative. The Relationship and Impact of Outsourced Services Our Organizational Structure This laboratory is highly standardized by the rules set by our accreditation with the College of American Pathologist (CAP), who define our routine standard operating procedures (College of American Pathologists, 2017). It is the formalization of these rules that the laboratory is best equipped to perform because of its engrained nature in our organizational structure and behavior. A study by Arikan found a significant relationship between formalization dimension of organizational structure and outsourcing, and that outsourcing improved operational performance (Arikan, 2015). This model fits our corporate structure. Although our laboratory technologists, technicians, and managers are highly specialized in chemistry to transfusion services, none are experts in the intricate processes of coding and billing nor adept at navigating the regulatory agencies in those fields. Since we do not have experts in this area, we would not only need to hire additional billing associates with expertise
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