The Rise of Insourcing: Trends and Insights

The healthcare industry in the UK has been wading through troubled waters for quite some time now, caused by a myriad of issues. Staff shortages, budget constraints and a rising patient backlog are creating significant strain on one of the UK’s most important sectors. Although many potential solutions have been suggested, there has been a notable uptick in healthcare institutions harnessing insourcing to help overcome the issues.

Insourcing, which fundamentally differs from traditional locum and agency staffing, involves a comprehensive, end-to-end service provision to support the industry. In this article, we will discuss the driving forces behind the rise of this solution, current trends in insourcing and the future outlook for the healthcare industry.

How is Insourcing Used in Healthcare?

Insourcing in healthcare is an increasingly popular way to provide clinical services. External organisations are contracted to provide specific services within the hospital or trust facilities, using their equipment and staff. This can range from diagnostic services, like audiology or radiotherapy, to more complex clinical procedures such as surgeries.

Driving Forces Behind Insourcing

Insourcing has been steadily gaining traction within the healthcare industry for several years, offering a potential fix for the various issues this sector faces. Some of the most compelling reasons that insourcing has grown in popularity include:

Addressing Staff Shortages

One of the primary motivators for the adoption of insourcing within the UK healthcare system is the ongoing challenge of staff shortages. The NHS, for example, had a vacancy rate of 8.4 % in 2023, which equates to around 121,000 full-time roles. NHS trusts often face difficulties in recruiting and retaining permanent staff, a situation exacerbated by increasing patient demands and budget constraints. Insourcing provides a viable solution by bringing in teams that can handle extra workloads during peak times, thereby alleviating pressure on existing staff and improving service continuity.

Enhancing Service Quality

Insourcing also allows trusts to enhance the quality of healthcare services. By partnering with specialists who can bring in expertise and advanced technologies, trusts can offer services that might not have been feasible with the existing resources. This is particularly beneficial in specialised clinical fields such as audiology, where recruiting permanent, highly skilled professionals may be challenging and costly.

Cost Efficiency

Cost efficiency is another significant factor influencing the shift towards insourcing. It provides a cost-effective alternative to outsourcing and hiring agency staff, which can be expensive due to high agency fees. Insourcing contracts can be tailored to the specific needs of a trust, allowing for better budget control and reduced financial wastage. Moreover, as institutions get to use their existing infrastructure, technology and assets, the entire model operates cost-effectively.

Trends in Healthcare Insourcing

The current utility of healthcare insourcing in the UK has been shaped by several notable trends, reflecting broader shifts in policy, technology, and patient care priorities. These trends underscore the growing reliance on insourcing while also highlighting the strategic directions that healthcare providers are likely to pursue in the coming years.

Growth in Specialist Services

There has been a noticeable increase in the insourcing of specialist medical services, such as radiology, clinical physiology, and others. These areas particularly benefit from insourcing because they often require highly specialised skills that may be in short supply within the industry. By insourcing these services, healthcare institutions can access top-tier talent and advanced technologies without the long-term overheads associated with expanding their permanent workforce.

Technological Integration

Advancements in medical technology have made it easier and more cost-effective for external providers to integrate their operations within hospital settings. From portable diagnostic equipment to modular operating theatres, technological innovations have facilitated a more seamless integration of insourced services. This trend is expected to accelerate as new technologies, like technology-enabled care services and AI-driven diagnostic tools, become more prevalent, enabling even more sophisticated services to be efficiently insourced.

Emphasis on Quality and Outcomes

The focus on improving patient outcomes through approaches like NHS IMPACT continues to drive insourcing decisions. Healthcare providers are increasingly opting for insourcing partners who can demonstrate not only expertise but also a proven track record of enhancing patient care. This shift is supported by data-driven approaches to healthcare, where insourcing partners are selected based on empirical evidence of their ability to improve clinical outcomes and patient satisfaction.

Regulatory and Policy Shifts

Changes in healthcare regulations and policies often influence insourcing trends. For instance, policies aimed at reducing waiting times for surgeries and other medical procedures have prompted many trusts to turn to insourcing as a solution to meet these targets. Furthermore, the post-Brexit regulatory environment might reshape insourcing strategies as it affects staffing and the availability of medical professionals in the UK.

Strategic Partnerships

A growing trend is the establishment of long-term, strategic partnerships rather than one-off or short-term contracts. Partnerships like NHS frameworks are designed to ensure continuity of care and foster deeper collaboration between the NHS trusts and third-party providers. Such arrangements can lead to more integrated service delivery models, where external teams work alongside NHS staff as part of a unified healthcare delivery team.

Sustainability and Localisation

There is an increasing trend towards localisation, where services are insourced from providers within the same region or community. This approach looks to support local economies and help in building sustainable practices by reducing the environmental impact associated with travelling staff and transporting medical supplies.

Insourcing is a Viable Way to Support Healthcare

Insourcing represents a strategic shift in the way healthcare services are delivered within the UK. By addressing major gaps in staffing, enhancing service quality, and ensuring cost efficiencies, insourcing is poised to play a major role in shaping the future of healthcare service delivery. As the healthcare industry adapts to new challenges, insourcing will likely become an integral component of the broader strategy to meet the growing and changing needs of the population.

If you would like to know more about insourcing for your healthcare institution, please contact our team at Globe Workforce Solutions today.

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