What is it about?
An examination of the factors relevant to outsourcing public health laboratory tests, in effect an illustration of the potential opportunity and transaction costs of the outsourcing decision.
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Why is it important?
This paper is a reminder of the potential second-order effects and opportunity costs of a decision to outsource a service, noting that the directly anticipated benefits of the service and nominal costs of the test are not the only costs and benefits accrued. It adds a concrete example of transaction costs and opportunity costs to the policy and economics literature
Perspectives
This arose from considerations of the problems and opportunities associated with a real-world request to consider the outsourcing of tests performed in a state public health laboratory to private contractors.
Dr. George Avery
Read the Original
This page is a summary of: Outsourcing Public Health Laboratory Services: A Blueprint for Determining Whether to Privatize and How, Public Administration Review, July 2000, Wiley,
DOI: 10.1111/0033-3352.00095.
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