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Wound Care Articles and Insights
April 20, 2023

Wound Center Management: Insourcing vs Outsourcing vs Support

Casey Park

In today's healthcare landscape, hospitals face many challenges when it comes to delivering high-quality care while maintaining efficient operations and cost-effectiveness. One of the challenges hospitals have to face is making the decision on whether to outsource or insource their wound center management. Each approach has its own advantages and disadvantages, and hospitals must carefully consider their unique needs and circumstances before making the decision. In this blog post, we will explore the pros and cons of each approach to help hospitals make an informed decision.

If the cost of a management company is the reason for hesitation in choosing a company to contract with, whether it’s Insourced, Outsourced, or even the Support model, take a look at our free eBook; Cost Saving Strategies for Wound Centers. This eBook will break down simple ways Wound Centers can save money while still providing the utmost care to patients.  

Insourcing Wound Center Management

Insourcing wound center management involves keeping all aspects of wound care in-house. This includes all staffing and training, equipment, and supplies. The main advantages this approach offers are: 

  • Increased control over patient care: Insourcing wound center management allows hospitals to have full control over the quality of care their patients receive, and gives hospitals the freedom to make their own decisions. Hospitals can ensure that their staff is trained to their standards and that they follow their protocols and procedures. 
  • Improved efficiency and cost savings: Insourcing can be more cost-effective in the long run, as it eliminates the need to pay third-party providers for their ongoing services. Additionally, insourcing can streamline communication and coordination between different hospital departments, reaching every patient possible. 
  • Enhanced staff training and development: Insourcing wound center management allows hospitals to provide their own staff with more opportunities for training and personal skill development, rather than bringing in additional outside help. Using the current staff and expanding their knowledge will ultimately benefit the hospital as a whole. 

However, there are also potential disadvantages to insourcing wound center management, including:

  • Higher upfront costs: Insourcing wound center management requires an upfront investment in staff training and development, equipment and technology, along with supplies, which can all be costly at the beginning.
  • Increased administrative burden: Hospitals that insource wound center management must handle all aspects of program operations. Daily operations can be time-consuming and require additional administrative resources, such as hiring additional staff. 
  • Limited access to specialized expertise: Insourcing may limit a hospital's access to specialized expertise that third-party providers can offer, which can lead to challenges in delivering high-quality care for hard to heal wounds. 

Outsourcing Wound Center Management

Outsourcing wound center management involves hiring a third-party provider to manage all aspects of wound care, including the supply of staff and equipment. This approach also has several advantages and disadvantages.

The advantages of outsourcing wound center management are:

  • Access to specialized support and expertise: Outsourcing allows hospitals to access specialized expertise in wound care that they may not have in-house. These experts, whether physician or nurse, can bring additional knowledge and experience to the table when dealing with challenging wounds and patients. 
  • Reduced administrative burden: Outsourcing wound center management can reduce the administrative burden on hospital staff, as the third-party provider handles all aspects of the program’s operation.
  • Improved Revenue Cycle: Outsourced management companies can provide specialized EMRs as well as documentation experts to review clinical documentation for medical necessity and reduce the overall risk of denials. With Denial Assistance from Clinical Documentation Integrity teams, centers can capture the maximum amount of revenue without worrying about being audited.

However, there are also potential disadvantages to outsourcing wound center management, including:

  • Lack of staff development: When wound center management is outsourced, hospital staff may miss out on opportunities for training and professional development in wound care management.
  • Management fees: Outsourcing center management can come at a higher cost for third-party expertise. Which can make hospitals hesitant in contracting out a wound care management company due to the management fees that come with their services. These fees can add an additional financial burden to the hospital, which may already be facing budget constraints. 
  • Potential for communication and coordination delays: Outsourcing may introduce inefficiencies in communication and coordination between the hospital and the third-party provider, delaying the current needs of the hospital’s program. 

Insourcing & Outsourcing, are not a one size fits all, and hospitals must carefully consider the pros and cons of all management options before making a decision. Insourcing will allow Hospitals to remain in control of their operations, but will not only cost more upfront, the day to day operations are the responsibility of the hospital admin. Whereas, Outsourcing will offer staffing flexibility to always meet the demands of patient volumes, but limits the hospital’s control over how patients are cared for. To determine which approach is the most appropriate, hospitals must take a look at where their gaps are in their operations, and where they need the support. If neither seems like a positive option, there is a third option. 

WCA Support: The Third Option

Outsourcing and insourcing both have their advantages and disadvantages, which is why Wound Care Advantage offers a third option, the Support Model. The WCA Support Model provides the benefits of both, without all of the drawbacks by outfitting wound care programs with our Management Technology Suite, Luvo. This platform connects programs to a network of experts, providing all of the necessary data, systems, and business intelligence needed to manage wound centers effectively. With volume growth technology, regulatory tracking, continuing education, EMR support, documentation review, product formulary, and much more, the Luvo platform allows programs to leverage WCA’s expertise & resources while maintaining control over their own center operations. 

So, what are the advantages and disadvantages of the WCA Support Model?

Advantages:

  • Expert support without loss of control: WCA's Support Model provides wound centers with access to wound care experts without outsourcing all of the operations. This allows wound centers to maintain control over their clinic flow while still leveraging WCA's expertise.
  • Scalability: As wound centers gain experience and expertise, they may require less support from WCA. The Support Model provides the flexibility to scale support up or down depending on the center's needs.
  • Cost-effective: The Support Model provides access to expertise and resources without the higher costs associated with outsourcing all operations.

Challenges:

  • Requires wound care experience: The Support Model requires some level of wound care expertise on the part of the wound center staff to effectively utilize WCA's resources.
  • Limited to wound care: While the Support Model provides expertise and the resources needed to operate the wound care program, it may not address other operational needs outside of the wound care. 
  • Center goals & approaches: If wound center staff and WCA experts do not share the same goals or approaches for the future sustainability of the program, misalignment between the two parties can occur, and may result in the support program not being utilized to its maximum potential.

Overall, the WCA Support Model provides wound care programs with an option that combines the benefits of both insourcing and outsourcing through access to expertise and resources without the higher costs and potential loss of control associated with outsourcing all operations. With the flexibility to scale support up or down, the WCA Support Model is a cost-effective solution for wound care programs looking to optimize their operations and reduce costs while still maintaining control over their center operations.

Ultimately, when making any decisions about the operations of a wound care program, the goal should always be to deliver the highest quality of care to patients in the most efficient and cost-effective way possible.

If the cost of a management company is the reason for hesitation in choosing a company to contract with, whether it’s Insourced, Outsourced, or even the Support model, take a look at our free eBook; Cost Saving Strategies for Wound Centers. This eBook will break down simple ways Wound Centers can save money while still providing the utmost care to patients.  

Do you have questions on management options? WCA is here to support you. Drop us a line to discuss ways we can support your center, team, and the patients you serve daily. 

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