Outsourcing as a measure seeking for cost reduction in public health care sector: Lithuanian case

Abstract

Public institutions not much differ from big corporations in which both cost saving and efficiency are the main aims to consider the model of outsourcing. The object of this article is cost reduction in public health care sector. The aim of the article is to identify the factors that determine the choice of outsourcing as a measure to reduce costs in public health care sector. The results of the research revealed that non-core activities as well as investing in resources and resource warehousing are the factors that determine cost reduction in Lithuanian health care sector while such factors as customer loyalty development, customer attraction and administrative work do not earn much attention as the ones that enable to reduce costs while buying outsourcing services in public health care sector.