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Record W2194841722 · doi:10.5430/jha.v5n1p114

Cost-benefit analysis of outsourcing cleaning services at Mahalapye hospital, Botswana

2015· article· en· W2194841722 on OpenAlexvenueno aff
Jonathan Cali, Heather Cogswell, Mompati Buzwani, Elizabeth Ohadi, Carlos Ávila

Bibliographic record

VenueJournal of Hospital Administration · 2015
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicHealthcare Policy and Management
Canadian institutionsnot available
Fundersnot available
KeywordsOutsourcingInsourcingBusinessActivity-based costingOperations managementKnowledge process outsourcingVendorQuality (philosophy)MarketingEconomics

Abstract

fetched live from OpenAlex

Objective: As part of its national privatization strategy to diversify the economy, Botswana has started outsourcing nonclinical services at seven public hospitals. Hospital managers are signing contracts without knowing whether outsourcing offers better value for money than “insourcing”. The objective of this study is to assist hospital administrators in making evidence-based outsourcing decisions.Methods: We conducted a cost-benefit analysis of cleaning services at Mahalapye Hospital. We take the hospital manager’s perspective when considering two alternatives: outsourcing, and “insourcing”. We used an activity-based costing approach and monetised benefits by weighting costs of the alternatives based on a service quality survey of hospital managers.Results: After adjusting per quality of the service, outsourcing provides greater value for money in terms of “cleanliness per pula spent” than insourcing. Incremental costs of outsourcing are Botswana Pula (BWP) 5 million (US $524,135) over five years but outsourcing is cost-beneficial after considering quality. The benefit-cost ratio of 1.06 means that outsourcing would return six cents in value for every dollar invested, resulting in net gains for Mahalapye Hospital of BWP 1.7 million (US $182,365) over five years.Discussion: Important lessons for hospital managers include: 1) Assessing the value of outsourcing requires information on the unit price of the outsourced services; 2) Outsourcing can be more costly than insourcing; 3) Outsourcing may be justified if it increases the quality of the service; 4) Collaboration between hospitals and vendors could reduce costs and increase benefits for both vendor and purchaser; and 5) Outsourcing should get more cost-beneficial as vendors and hospitals gain experience working together.Conclusions: The lessons from this study are relevant to other hospitals considering outsourcing agreements. Outsourcing requires managerial skills, supported by sound benchmark data and proper quality monitoring to streamline operations, achieve value for money and improve service delivery so hospitals can focus on core clinical services.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: Observational
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.089
Threshold uncertainty score0.580

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0010.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.059
GPT teacher head0.293
Teacher spread0.234 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations8
Published2015
Admission routes1
Has abstractyes

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