Queen’s to outsource In keeping with a trend toward cost cutting, Queen's Medical Center said today it will outsource its hospital information technology system to Dallas-based ACS Healthcare Solutions in a seven-year contract worth $27 million.
information systems
for $27 million
Most of the 84 affected employees
will keep their jobs or be offered
similar ones, the company saysBy Lyn Danninger
ldanninger@starbulletin.com
Of the 84 full-time people employed in Queen's Information Services Department, five full-time employees, one part-time employee and one call-in employee will loose their jobs, said Queen's spokeswoman, Lynn Kenton.
An additional 53 employees will remain on Queen's payroll while 26 will be offered jobs with ACS, said Queen's spokesperson, she said.
Those employees who choose to move over to ACS will receive comparable salaries, Kenton said.
The new contract takes effect Nov. 1.
Queen's Chief Executive Officer and Executive Vice President Dan Jessop described the agreement as "a win-win situation for the hospital and our information systems staff.
"This contract will improve our fiscal stability and bring us advanced information systems while offering our staff the opportunity to work with a international leader in health care information technology services," he said.
Jessop cited the continuing economic impact of 1997's federal Balanced Budget Act, which significantly reduced hospital reimbursements, as a key reason to outsource the hospital's information systems.
The continuing cost to the hospital of keeping up with new technology was another factor.
"It's going to give us more access to advanced technologies without having to purchase the equipment," said Kenton.
Ken Kudla, now an ACS employee, will be appointed to oversee the department. He replaces Information System Manager Rod Moriyama.