Using the Outsourcing Decision Matrix

Using the Outsourcing Decision Matrix

Every company tends to outsource some of their business activities. Doing so can help to free up resources, which allows them to run their business more efficiently. However, deciding what to outsource can be quite challenging. Some activities may seem like they can be done just as easily in-house and for a smaller expense than it would to outsource to a third party.

Deciding When to Outsource

Physicians in particular may have a difficult time determining what parts of their medical practice they should outsource. Whereas outsourcing certain activities could lead to increased efficiency and even have a positive impact on your bottom line in terms of cost savings, outsourcing the wrong activities could lead to the loss of proprietary information. You could receive components necessary to your practice that don’t meet the standards of quality that you’ve established.

To help you determine what parts of your medical practice you should outsource, you should use the Outsourcing Decision Matrix Tool.

The Outsourcing Decision Matrix Tool

The Outsourcing Decision Matrix will help physicians decide what to outsource based on two important factors: how strategically important the task is in terms of competition and how great of an effect the task has on the operational performance of your medical practice.

Using the tool is easy. There are four quadrants in the matrix in which you’ll want to place the tasks you’re considering outsourcing in order to identify whether your medical practice can actually benefit from outsourcing them.

1. Form a strategic alliance – This quadrant includes tasks that while strategically important, don’t contribute much to operational performance. Your marketing efforts are an example of this – you could work together with a professional marketing agency to market your practice.
2. Retain – This quadrant includes tasks that have high strategic importance as well as a big effect on operational performance. These tasks should be kept in-house to retain control over them.
3. Outsource – This quadrant includes tasks that are important in terms of operational performance, but are not strategically important. For example, outsourcing your medical billing collections.
4. Eliminate – Certain activities don’t impact your strategy or operational performance and can be eliminated. For example, running an in-house child care program for your employees.

Use this Matrix as a guide to decide which tasks, processes or functions you should outsource in your organization to greatly benefit your practice. For more information about Outsourcing Services, contact us at ProMD Medical Billing today so we help you make better outsourcing decisions.

ProMD Medical Billing is happy to help with your billing assessment needs so you can maximize profits and increase patient satisfaction. To learn more about how ProMD can make your practice run like a well-oiled machine, call 866-960-9558 or fill out our online form to request a billing assessment.

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