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Shared Services Insight - Fourth Quarter 2009

Shared Services for Hospital Systems

Shared services has been helping organizations in many industries reduce costs, improve efficiency, and deliver strategic value for decades. Now, it’s health care’s turn to pursue the potential benefits that shared services has to offer. The urgent marketplace pressures facing the health care industry today make shared services a well-timed investment to consider for systems looking for ways to reduce costs without compromising the quality of care. Done well, the use of shared services has the potential to greatly help hospital systems in their efforts to navigate a challenging economic landscape without forcing them to compromise the quality of patient care.

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Which is Better: Outsourcing or Shared Services?

This Deloitte Debate explores whether it is better to outsource activities such as finance, human resources and information technology to an outside vendor or consolidate them to an in-house shared services center. Or perhaps combine the two approaches? Featured in this Debate are Peter Lowes, principal, Deloitte Consulting LLP, Susan Hogan, principal, Deloitte Consulting LLP, and Erica Volini, principal, Deloitte Consulting LLP, providing functional perspectives for Strategy & Operations and Human Resources.

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Ask the Pro: Shared Services for Hospital Providers

Jeff Christoff, principal, Deloitte Consulting LLP

Question:
The economy may be showing signs of life, but for hospital systems, the cost crunch never ends – especially now that health care reform is here. Maybe shared services can help us to reduce headcount, but can it do anything else to help us address our financial challenges?

Answer:
One widespread myth that often distorts health care executives’ perceptions of shared services value is that one-time headcount reductions account for almost all of shared services’ potential benefits. While it’s true that economies of scale should reduce salary and benefit expenses….

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The Conference Board’s Shared Services Conference

Deloitte was a proud sponsor of The Conference Board’s Shared Services Conference in Chicago on November 18-19. The conference was attended by approximately 130 shared services leaders. Throughout the conference Deloitte’s 2009 Global Shared Services Survey article and results were highlighted, notably during Annette Tirabasso’s keynote “Moving Beyond Traditional Shared Services Boundaries” and Tom Torlone and Simon Tarsh’s client panel “Shared Services and Outsourcing: Optimize the “Make vs. Buy” Decision for your Organization.”

As used herein, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

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