Economic evaluation of outsourcing in a military hospital in Tehran

Outsourcing is considered a vital economic tool for managing hospitals. This study aimed to conduct an economic evaluation of hospital services outsourcing in a military hospital in Tehran.

This study involved an economic evaluation through cost analysis (cost minimization) conducted in a military hospital in Tehran in 2019. The financial implications of outsourcing services to contracted employees were compared with the costs of direct employment under four different scenarios. Data analysis was performed using Excel 2019 software.

The study found that outsourcing, when the contractor fully complies with labor laws, resulted in a financial benefit of 5.1 million IRR per month for the hospital per outsourced job. However, non-compliance with labor laws by contracting companies led to a financial loss of 5.4 million IRR per month for each outsourced job.

The findings suggest that outsourcing can bring significant financial benefits to the hospital when the contractor complies with labor laws. Conversely, inadequate supervision of the contractor and a lack of commitment from the private sector can result in financial losses associated with outsourcing.