In the aged care (and health care) industries the economies of scope are changing. Service providers and their suppliers are becoming increasingly specialised and are outsourcing activities that are regarded as non-core or sourcing locum agencies to relieve staffing issues.
In the mid nineties the aged care and health care industries began to embrace this concept. Initially service providers focussed on outsourcing cleaning and kitchen services. This trend has evolved to include professional health services such as occupational health and safety, podiatry, physiotherapy, speech pathology and dietetics.
Through outsourcing and locum agencies, service providers can expect increased operating performance, obtain expertise, improve risk management, acquire innovative ideas and most importantly adapt to the ever-changing environment.
Since W&L has a narrower scope of service to the service provider it can perform better in its area of expertise. There are three specific benefits to outsourcing therapy services and locum agencies. These include:
- Strategic:
- W&L has a specific expertise so that the health service provider is able to obtain specialised expertise in allied health documentation systems, ACFI compliance, strategies to reduce the risk of subsidiary downgrades (aged care facilities), clinical best practice and education consultancy. Additionally, outsourcing and locum agencies provide greater flexibility to respond to changes in staffing levels and demand.
- Financial:
- W&L will reduce the amount of capital employed by the service provider (aged care facility only). W&L is able to obtain higher levels of capital productivity facilitating increased flexibility and response to change.
- Organisational:
- The service provider decides to focus on what it does best so as to increase customer value.
The outsourcing and locum agency model allows a business to allocate resources, time and energy into these core processes and outsource all other non-core processes.
W&L submit that the core business processes of service providers are:
- Increase Client Satisfaction through ‘best in class’ care.
- Maximise Revenue Inflow through minimising bed downtime.
- Minimise Waste through implementing smart documentation systems and processes to maximise claims.
In conclusion, service providers may ask themselves four questions:
1. Can we add value to the business by outsourcing non-core activities or sourcing a locum?
2. Is allied health a core service or is it a specialised service?
3. Should we outsource allied health services or utilise locum agencies?
4. Which company will best satisfy our needs?
Economic rationale
There are many factors that need to be considered. Due diligence in the value, weight and economic benefit of each factor is crucial. These factors include:
- Risk and exposure
- Documentation system
- Continuity of service
- Management input
- Staff acquisition
- Staff retention
- Quality control
- Resources
- Additional services
With a large team of therapists on the road, W&L is well equipped to provide locum services to not only the aged care sector but the whole health care sector within South Australia. We can provide a convenient locum service at short notice, often with a therapist who is experienced in that particular type of service delivery. Therapists that are available for locum services include physiotherapists, podiatrists, speech pathologists, dietitians, occupational therapists, masseurs, aromatherapists, physiotherapy aides, naturopaths and diversional therapists. Our carefully selected therapists who make up our team are experienced and committed to delivering a professional service and can also provide locum services to country and rural settings.
For more information on the different locum services that W&L offers, see:
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