Hamza Asumah, MD, MBA
Outsourcing is a business practice in which a company hires a third-party service provider to perform specific tasks, functions, or processes that were previously handled in-house. The service provider is usually an external organization or an individual contractor, and the tasks or processes that are outsourced can be either core or non-core functions of the company.
Core functions are those activities that are essential to the company’s main business, while non-core functions are activities that support the core functions but are not essential to the company’s core business.
Outsourcing can be done domestically or internationally, and it can involve a range of services, including customer service, information technology, accounting, marketing, human resources, and operations.
However, there have been some notable examples of successful outsourcing arrangements in the region. Here are a few examples:
Photo By Near Term
1. Narayana Health in Kenya
In 2016, Narayana Health, a hospital chain based in India, partnered with the Kenyan government to operate two hospitals in the country. The partnership aimed to provide affordable and high-quality healthcare services to Kenyans. The partnership has been successful, with the hospitals recording a high patient satisfaction rate and providing quality care at a lower cost.
2. EHS in Liberia
In 2015, the Liberian government outsourced the management of the country’s largest referral hospital to EHS, a US-based healthcare company. The partnership aimed to improve the quality of healthcare services and reduce the high mortality rate in the country. Since the partnership, the hospital has seen a significant increase in the number of patients treated, and mortality rates have decreased.
3. Care Hospitals in Tanzania
In 2016, Care Hospitals, a hospital chain based in India, partnered with the Tanzanian government to operate a hospital in the country. The partnership aimed to provide quality healthcare services to Tanzanians at an affordable cost. The hospital has been successful, recording a high patient satisfaction rate and providing quality care at a lower cost.
These examples suggest that outsourcing hospital operations in Africa can be successful in improving the quality of care provided to patients and reducing costs. However, it is important to note that outsourcing is not a one-size-fits-all solution and that each partnership must be tailored to the specific needs and challenges of the healthcare system in question. Additionally, it is essential to ensure that the outsourcing arrangement is transparent, accountable, and equitable for all stakeholders involved.
Photo By Wealth Management
According to a report by Frost & Sullivan, the outsourcing market in the African healthcare industry was valued at $1.03 billion in 2019 and is expected to grow at a compound annual growth rate of 12.5% between 2019 and 2024.
Several studies have examined the benefits of outsourcing for African hospitals. For example, a survey conducted by Black Book Market Research found that 84% of healthcare executives in Africa stated that outsourcing had improved their access to skilled personnel and improved overall efficiency. Additionally, 60% of healthcare executives in Africa reported that outsourcing had improved their operational efficiency, according to a study conducted by Deloitte.
Photo By Synergy HCLA
Outsourcing hospital operations in Africa is a growing trend in the healthcare sector. Many African countries are struggling to provide adequate healthcare services due to a shortage of resources, such as trained personnel, equipment, and funding. Outsourcing hospital operations can help to alleviate some of these issues by bringing in expertise, technology, and infrastructure from outside the country. In this blog post, we will explore some of the benefits of outsourcing hospital operations in Africa.
1. Access to Expertise
Outsourcing hospital operations can provide access to experienced and specialized healthcare professionals, such as doctors, nurses, and administrators. These professionals can bring their knowledge and expertise to the hospital, helping to improve the quality of care provided to patients. They can also provide training to local staff, helping to build capacity and improve the skills of healthcare workers in the region.
2. Improved Efficiency
Outsourcing hospital operations can help to improve the efficiency of healthcare services. Service providers can bring in technology and equipment that may not be available locally, helping to streamline processes and reduce waiting times. This can lead to better patient outcomes and higher levels of patient satisfaction.
3. Cost Savings
Outsourcing hospital operations can help to reduce costs for healthcare providers. Service providers can leverage economies of scale to reduce the cost of equipment, supplies, and services. This can help to lower the cost of healthcare services for patients, making them more accessible to a wider range of people.
4. Focus on Core Competencies
Outsourcing hospital operations can free up resources for healthcare providers to focus on their core competencies. By outsourcing non-core functions, such as IT, finance, and human resources, healthcare providers can focus on delivering high-quality care to patients. This can help to improve the overall quality of healthcare services in the region.
5. Access to Advanced Technology
Outsourcing hospital operations can provide access to advanced technology and equipment that may not be available locally. This can help to improve the quality of care provided to patients and can lead to better patient outcomes. Service providers can also provide maintenance and support for this equipment, ensuring that it remains operational and effective.
Photo by One Healthcare
In conclusion, outsourcing hospital operations can provide many benefits for healthcare providers in Africa. It can help to improve the quality of care provided to patients, reduce costs, and free up resources to focus on core competencies. As such, it is an increasingly popular option for healthcare providers in the region.
I would love to hear what your experience is with outsourcing operations of your hospital. Please leave your comment below.
Dr. Hamza Asumah 
Leave a comment