Highlights
Background
“Outsourcing is the process of having a third party provide services for your company or institution.” Shezi(2019) in this research paper I will be focusing of outsourcing in the healthcare sector in Africa. In this research paper, I will be looking at ways to improve the healthcare sector in the most efficient and cost-effective manner when it comes to outsourcing. According to the Lancet Healthcare Access and Quality Index. Business Tech( 2017), the African Healthcare sector dominates the bottom 15 in terms of healthcare quality ranking globally. This research paper will delve into the supply chain departments which play an important role in the hospital and clinic’s daily operations. Shortages, poor quality and limited budgets have proved to be some of the challenges in faced public hospitals. Shezi, (2019)
Although outsourcing has proven to have a number of benefits aiding in the ability for healthcare providers to meet the continuous demand for medication, streamlining of operations as well as shared risks, outsourcing has proven to be met by a number of challenges. Limited budgets which have led to hospitals having to seek cheaper ways of acquiring the personnel to meet the requirements of hospitals, for example, some public hospitals have to resort to either not having securities and cleaners or hiring the cheapest which does not always have the required skills. Cost reductions have become one of the core focuses in most hospitals and clinics which is why a large number of them have turned to outsourcing some of their services and goods. Kruk (2017)
Besides the benefits outlined above there are problems that hinder progress in hospitals and clinics, namely; staff shortages, poor product specifications on good for example, Hospital beds may be of a lower standard than agreed on with the supplier. There are potential for setbacks, an example, recently in South Africa it was reported that there’s a shortage of contraceptive injection in KwaZulu Natal (IOL Newspaper, 2018). There is also a problem of a limited budget provided to hospitals and clinics which limits the hospitals from meeting the basic needs of running a hospital. Outsourcing may lead to management not being able to provide basic healthcare operations and deliverables of activities that they outsource. Pieterse (2017)
Research Objectives
1. To identify the biggest outsourcing problem between poor quality and late deliveries.
2. To find out if the necessary steps are being taken to make sure suppliers deliver the agreed-upon goods at the correct time.
3. To find out how it benefits the community when suppliers deliver goods and services requested by the healthcare provider.
4. To find out if the annual allocated budget for the healthcare provider gives room for the healthcare provider to change the supplier if the supplier fails to produce services and goods that are agreed on and choose another supplier with better pricing for a better good or service without worrying about the budget.
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