Contracted foodservice in a hospital setting

The popularity of outsourcing food services continues to gain momentum. among the hospitals today; in order to perform a wide range of functions from logistics to human resources to purchasing and service. Outsourcing food service focuses on core competencies of providing better customer service while, at the same time, increasing profit margins. Some hospitals operating the dietary department today in the Philippines have changed from an in-house management to a food service contractor due to patients' complaints that food is terrib1e, and to remove overhead expenses which are enormous in terms of manpower salaries and benefits. In addition, the hospital employees were peppering their comments with complaints about food, On the blighter side, outsourcing food service has its advantages to the hospitals that includes improving the small budget for food service operation because the hospitals oftentimes think that food services is not a core process. Then there is a problem in the renovation of the whole department because of the budget and purchasing of new equipment, which may be done by the outsourced company and third, salaries and benefits of the food service employees will not be a problem of the hospital. Furthermore, the hospital may request for the transfer of .nonperforming employees of the outsourced company to their other outlets if this is included in the contract. However, outsourcing has its disadvantages. Among these are that the benefits and salaries of former employees of the hospital dietary department may be different should they be absorbed by the outsourced company. Also, the policies and regulations of the outsourced company may be different.

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