Outsourcing Facilities Management in the Healthcare Industry

Meta Description: Learn how partnering with a facilities management company can benefit your healthcare organisation.

Outsourcing facilities management in healthcare has become increasingly popular in recent years. This is due to its many benefits, such as cost savings, improved efficiency, and access to specialised expertise. According to a survey by the International Facility Management Association, approximately 68% of healthcare organisations outsource some aspect of their facilities management.

Additionally, the global healthcare facilities management market is expected to reach $1.2 billion by 2026, growing at a CAGR of 6.7% during the forecast period. Outsourcing facilities management in the healthcare industry can help organisations to focus on their core competencies while ensuring that their facilities are well-maintained and safe for patients and staff.

Outsourcing has had a significant impact on the way companies operate in the present day. This article will focus on the utilisation of outsourcing within the healthcare sector, its advantages, and how it can aid in addressing various challenges within the industry.

Benefits of Outsourcing Facilities Management in the Healthcare Industry

Outsourcing facilities management in the healthcare industry can offer a variety of benefits, including:

 Rising Costs and Capital Investments

Outsourcing can help healthcare organisations to reduce costs by eliminating the need to hire and train in-house facilities management staff. In countries such as the United States, healthcare has risen to a level that is difficult for many individuals to afford. Despite this substantial source of revenue, there still needs to be more resources. A recent survey by Black Book found that for the average hospital to become financially stable by 2022, expenses must be reduced by 24%. The high-cost structure of hospitals has led many providers to consider or implement outsourcing in various aspects of their operations.

 Improved efficiency

Outsourcing facilities management can also improve efficiency, as specialised facilities management companies have the expertise and resources to complete tasks more quickly and effectively.

 Access to specialised expertise

Outsourcing facilities management can also provide healthcare organisations with access to specialised expertise in energy management, sustainability, and compliance with regulations.



Improved patient satisfaction

A well-maintained facility can improve the patient experience, increasing patient satisfaction and loyalty.

 Increased focus on core competencies

Outsourcing facilities management can also allow healthcare organisations to focus on their core competencies, such as patient care while ensuring that their facilities are wellmaintained and safe.

 Growth of modern technologies

Big data analytics has rapidly grown and has become a significant factor in advancing medical procedures and academic research. Outsourcing service providers have begun to use powerful tools to collect, manage, analyse and process large amounts of fragmented, unstructured, and structured data generated by current healthcare systems.

 Compliance and regulations

Outsourcing facilities management can also provide healthcare organisations with access to specialised expertise in energy management, sustainability, and compliance with regulations.

 Flexibility and scalability

Healthcare organisations can scale up or down their services based on the organisation's changing needs. According to MarketsandMarkets, the global healthcare facilities management market size is expected to reach USD 1.2 billion by 2026, growing at a CAGR of 6.7% during the forecast period. The increasing demand for costeffective healthcare solutions, the growing patient population, and the need for compliance with regulations are among the primary drivers of this market.

Challenges of Outsourcing Facilities Management in the Healthcare Industry

 Communication and coordination difficulties

Outsourcing facilities management in the healthcare industry can lead to communication and coordination difficulties between the healthcare organisation and the outsourced facilities management company. This can result in delays and inefficiencies in the management of facilities.

 Quality control issues

Outsourcing facilities management in the healthcare industry can also lead to issues with quality control, as the healthcare organisation may need direct oversight of the outsourced facilities management company's actions. This can result in poor facilities management and maintenance, potentially impacting the quality of patient care.

 Financial concerns

Outsourcing facilities management in the healthcare industry can also raise financial concerns, as the healthcare organisation may have to pay a premium for outsourced facilities management services. According to a 2020 report by IBISWorld, the average annual cost of facilities management services is around $5,000 per employee.

 Regulatory compliance

The healthcare industry is heavily regulated, and outsourcing facilities management can introduce additional compliance challenges. The outsourced facilities management company must adhere to the same regulations and standards as the healthcare organisation, which can be complex and time-consuming.

 Data security

Healthcare organisations handle sensitive patient information and data, and outsourcing facilities management can introduce additional security risks. The outsourced facilities management company must have security protocols to protect patient information and data.

Best Practices for Outsourcing Facilities Management in the Healthcare Industry

Outsourcing facilities management can bring significant benefits to healthcare organisations, but it is essential to follow best practices to ensure success.

 Clearly defined scope of work and expectations: To ensure that outsourced facilities management services meet the healthcare organisation's needs, it is essential to have a clearly defined scope of work and expectations for the outsourced facilities management company. This can include detailed specifications for facilities management tasks, timelines for completion, and performance metrics for measuring success.

 Conduct thorough due diligence: Carefully evaluate the outsourcing company's qualifications, references, and track record before entering into a contract.

 Flexibility: The agreement should be flexible enough to adapt to changing healthcare industry trends and the healthcare organisation's evolving needs.

 Quality assurance and performance monitoring: To ensure that the outsourced facilities management company provides high-quality services, the healthcare organisation should have a quality assurance and performance monitoring program. This can include regular inspections of facilities and equipment and monitoring key performance indicators (KPIs) such as service response times and equipment uptime.

 Maintaining Compliance: Outsourced facilities management services must comply with all relevant laws, regulations, and industry standards, such as OSHA and HIPAA.

 Regular communication and coordination: Regular communication between the healthcare organisation and the outsourced facilities management company is essential to ensure that facilities management tasks are completed on time and to the desired standard. According to a 2020 International Facility Management Association (IFMA) report, effective communication and collaboration between internal and external stakeholders are critical success factors for outsourcing facilities management.

 Have a Backup Plan: Have a backup plan in case of unforeseen circumstances or if the outsourced FM company cannot fulfil their end of the agreement.

FAQs

What are the new trends in facility management?

 The office as a service

 Data-driven sustainability processes

 Rightsizing real estate footprints