Johnston Health in North Carolina May Outsource Food, Janitorial Services to Cut Costs

Johnston Health, based in Smithfield, N.C., may begin outsourcing its food and janitorial services in efforts to cut costs, according to a Herald report.

The health system could save an estimated $425,000-450,000 the next fiscal year if a private company manages the two departments. The nearly 120 Johnston Health employees who are affected by these changes would not lose their jobs, though their benefits may change.

Johnston Health officials have introduced other possible cost-saving measures as part of the budget proposal, including hiring two collection agencies to rein in bad debt and taking away hospital-issued cell phones from employees.

Related Articles on Hospital Cost-Cutting Measures:

How to Optimize Your Hospital's Revenue Cycle to Achieve Efficiencies, Savings
10 Hospitals Cutting Jobs
Cutting Costs in an Age of Expense: 5 Thoughts From MemorialCare Health System CEO Barry Arbuckle

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