Healthcare IT leaders are not getting much sleep these days. Increasing demands to support complex systems with tightening budgets and not enough skilled technology workers weigh heavily on their minds, as they look to reduce healthcare IT costs without compromising patient care.
When healthcare IT leaders talk about implementing predictive analytics or artificial intelligence initiatives or even strengthening cybersecurity, their biggest concerns are cost, resource constraints and trying to find talent, said Melissa Stahl, Research Manager at the Health Management Academy, of results of a recent survey of healthcare C-suite leader on their priorities heading into 2018.
"Financial pressure is really seeping into all these trends and making it hard for health system leaders to navigate implementing these technologies, even if they see value" in doing so, Stahl said.
Increasingly, savvy CIOs and IT leaders at large and small hospitals and healthcare facilities are responding to these challenges by taking creative approaches to their workforce strategy, leveraging such tools as domestic outsourcing, a form of healthcare IT outsourcing, as reported in the CIO.com article, 7 Hot IT Outsourcing Trends and 7 Going Cold.
Domestic outsourcing, or onshoring, is a talent alternative that meets business requirements for proximity, delivery speed, agility and compliance, while capitalizing on location strategy and helping to reduce healthcare IT costs.
Typically, healthcare IT leaders have been hesitant to pursue healthcare IT outsourcing for tech support. Their reasons for keeping IT resources onsite run the gamut and include familiarity, staff responsiveness and control (due to the many regulations they are required to meet).
And while some large hospitals and healthcare facilities may indeed continue to keep their IT resources onsite (their budgets are larger and they may already have systems in place), smaller rural community hospitals may find it especially challenging to continue to maintain this support model due to budget constraints let alone talent constraints. Domestic outsourcing may be the answer to fill some IT support needs as part of a thoughtful healthcare IT outsourcing strategy.
A Good Understanding of Total Costs
Healthcare CIOs who opt to use domestic outsourcing services have a good understanding of the total cost of having full-time resources onsite. Some of these costs are:
- Recruiting qualified employees and all Human Resources and associated costs (advertising, interviewing, background screening, travel, relocation)
- Paying full-time wages and benefits
- Providing a physical workspace (real estate, office building and associated costs)
- Providing technology tools (laptop, phones, internet access, etc.)
- Telecommunication costs (cell phones, long distance access, etc.)
- Training
All things considered, domestic outsourcing can be less expensive than hiring onsite full-time employees. Provider costs and the knowledge base of these remote resources are spread over several clients. This approach can help reduce healthcare IT costs while maintaining service quality.
As it becomes increasingly difficult to source skilled IT healthcare talent to meet demands for round-the-clock support required by physicians and clinical staff, domestic outsourcing also is a cost-effective way to meet EHR (Electronic Health Record) application, help desk and technology support and other requirements, aligning with selective healthcare IT outsourcing models.
Still, there is no one-size-fits all solution. Healthcare IT leaders must conduct due diligence needed to arrive at the solution that works for them. It may include using a combination of EHR vendor support staff, onsite staff and domestic outsourcing services that can help ensure healthcare facilities are compliant with Federal regulations while optimizing their total cost of labor and support, and, where appropriate, exploring healthcare IT outsourcing to reduce healthcare IT costs.
Q&A
Question: What is domestic outsourcing (onshoring) in healthcare IT, and why is it attractive?
Answer: Domestic outsourcing is a talent alternative that places IT support within the same country, leveraging location strategy to balance proximity, delivery speed, agility, and compliance while helping reduce healthcare IT costs. It addresses needs for timely, compliant support without the overhead of building and maintaining full in-house teams. While many organizations have been hesitant to outsource due to preferences for familiarity, responsiveness, and control amid strict regulations, onshoring mitigates these concerns by keeping support close and compliant.
Question: What pressures are pushing healthcare IT leaders toward this model now?
Answer: Growing financial pressure, tightening budgets, and persistent talent shortages make it hard to implement initiatives like predictive analytics, AI, and stronger cybersecurity—even when leaders see clear value. To maintain service quality and meet evolving demands under these constraints, CIOs are turning to creative workforce strategies such as domestic outsourcing.
Question: How can domestic outsourcing lower total costs compared to onsite full-time staffing?
Answer: It avoids or reduces many expenses tied to full-time onsite teams, including: recruiting and HR (advertising, interviews, screening, travel, relocation), wages and benefits, physical workspace (real estate and facilities), technology tools (laptops, phones, internet), telecommunications, and training. Provider costs and expertise are shared across multiple clients, making the model more cost-effective while maintaining quality.
Question: Which healthcare IT functions are well-suited for domestic outsourcing?
Answer: Functions requiring reliable, round-the-clock coverage and standardized workflows are strong candidates—especially EHR application support, help desk services, and general technology support. Onshoring these roles can meet proximity and compliance needs while improving responsiveness and coverage.
Question: How should leaders determine the right support model for their organization?
Answer: There’s no one-size-fits-all answer. Leaders should conduct due diligence to build a hybrid model that may combine EHR vendor resources, onsite staff, and domestic outsourcing. This approach helps ensure compliance with Federal regulations, aligns support with organizational needs, and optimizes the total cost of labor—particularly beneficial for smaller, rural hospitals facing budget and talent constraints.
