We include the size of the hospital ERP market in our discussion about healthcare ERP. It shows a trend of growth, from $6.5 billion to $11.7 billion, forecast by 2030. A hospital management system has several modules.
It covers everything from inventory to resource management, from patient care to financial and billing management. For several years the hospital industry has struggled with making processes more efficient and providing best-in-class patient care.
Hospitals must align all their operations to meet the increasing number of diseases and the demand for high-quality treatments. It will be impossible to combine all aspects of the organization's healthcare - such as accounting, patient care, management of medical supplies, management, and pharmacy - onto one page.
Successful business practices are based on optimized and automated operations. The healthcare industry can easily apply this rule. The latest software is essential for medical institutions and businesses as they boost efficiency.
Finding tools to manage patients and doctors that reduce paperwork, increase efficacy and improve patient care while reducing overall costs is one of the biggest challenges facing healthcare providers. More and more hospitals are adopting medical ERP software. It has exceptional features that make it ideal for every setting.
There is almost no task today that can be done manually. The world has become more competitive, and the pace of life is faster. In hospitals with a steady flow of people seeking medical assistance, a system must be used to ensure accuracy and speed. Enterprise Resource Planning, or ERP, is a system that can assist institutions like hospitals in overcoming the obstacles they've been facing for years.
What is ERP in Hospitals?
Only when managers and owners are armed with accurate data about their entire enterprise can an organization function at its best. An organization usually comprises modules such as accounting, human resources, and customer relationship management. Enterprise Resource Planning (ERP) is a tool that allows users to access all integrated data from different departments and store it in real time.
These modules provide a wealth of information to the business. Bills, invoices and information about stock in and out, information on staff, and customer data are all part of the modules. These aspects require thorough analysis and monitoring, both essential to preparing accurate financial statements. These reports allow the business to assess growth. An ERP system can be viewed as a structure that collects real-time data from different departments within a company. Company managers and owners can also monitor this data.
Let's now learn how ERP is used in hospitals. The hospitals are very busy. Hospital administration must be alert when dealing with information coming from different departments. Patients, staff members, physicians, inventory of medical supplies, pharmacies, billing, or accounts, are all part of a hospital. This list may not be exhaustive but represents a functional hospital scenario. ERP systems are a great way to handle core business activities efficiently and on time. An ERP system integrates core services, lowering the costs of the organization.
Why Does a Hospital Need an ERP System?
The challenge for hospitals is to reduce their overhead and operational costs without compromising on the quality of care they provide to their patients. An ERP system will not only help to increase efficiency and productivity, but it can also improve operational precision in all departments.
A hospital's workflow can be improved by implementing an ERP system, as it reduces the amount of manual work. It can also indicate savings on labor costs. In addition, hospitals can better provide outstanding care and medical attention to patients.
This image shows a typical ERP setup within a healthcare facility. The essential elements are highlighted, and their relevance to operational efficiency. In hospitals, there is a high demand for accurate and real-time information. A hospital's ERP system gives them high visibility of the database, accessible by the doctors and their team, as well as the billing desk, reception, and other departments.
Inventory Management and Batch Tracking: Medical supplies like masks, syringes, or cotton are part of the hospital's inventory. An ERP system makes it easier to monitor the inventory.
A single-stop database can also make it easier to track medical supplies by batch in the hospital and pharmacy. ERP will send alerts to the appropriate management so that they can place the orders and take the necessary action. With a centralized system, assessing the stock in/out will be easier.
Financial Management: To make informed decisions, an organization needs to monitor all financial data from different departments. A database containing all financial reports can be accessed by managers using an integrated system. This makes it easy to allocate amounts, manage payments and build budgets.
Accounting: The ERP system's accounting module makes life easier by integrating all statements and the general ledger on one platform. The accounting team can quickly identify any mistakes or discrepancies before the month ends. They can also close out the statement without having to do any tedious tasks. They can also keep track of their expenses and bills by accessing the invoices and various bills.
Doctor and Staff Management: ERPs can manage leave management, appointment schedules, pay schedules, and the doctor check-in timetable. An ERP allows the hospital management to understand the formalities and hiring process, as well as employee benefits and overtime.
Management of Patients: Includes registration, management, appointments, allocation, payments, etc. The ERP's patient management module facilitates everything from storing patient data to billing and payments.
Pharmacist Management: Today, almost all hospitals have their pharmacy. ERP's pharmacy module can assist in purchasing medications, maintaining accurate records of purchased drugs, and assisting medical experts at the hospital with various research programs. Hospitals can opt for a pharmacy module that optimizes the functions of this department.
Complying: The compliance of businesses is essential to their operations. Hospitals may have more strict compliance requirements. An ERP system can assist owners and managers in preparing and submitting the necessary documentation. ERP updates can keep the business in compliance with regulatory requirements.
An ERP can have surprisingly positive outcomes for hospitals. The benefits of having an ERP for hospitals can be surprising. Better patient satisfaction and higher profits are closely related.
How Can Integrated ERP Benefit Hospitals?
After learning about ERP from the sections above, we will learn what advantages hospitals can gain by implementing an ERP.
Maintaining Medical Records is Simple
An ERP system is a must-have in today's world, where all patient information needs to be at the click of a button. They call the hospital to find out if a doctor is available or whether their issue can be solved by the specialist concerned. This information must be accurately provided to patients by the hospital's help desk.
Patients will generally ask about their appointment time and how much they'll be charged. You can confirm such basic questions over the phone. It makes things easier for the patient and leads to better relationships. Sometimes, patients are registered at the hospital but call to ask for a doctor's follow-up. When they call, it's essential to pull up their medical records to provide the necessary information.
The constant influx of patients and pressure on hospital staff during COVID cannot be ignored. A centralized database can keep track of monitored conditions like temperature and oxygen level. The system can also be used to identify and treat patients needing immediate attention.
Automation
Like any organization or facility, hospitals need to evaluate their financial performance. With an ERP, all business modules, such as accounting, human resources, and inventory, can be optimized under a single database.
All authorized hospital entities can access data entered by one department. All the numbers, facts, and figures will be placed in one database. It replaces paper-based, tedious systems and allows for quick, accurate decisions.
Here are the core benefits that ERP automation provides:
- Reduces the amount of labor required
- Minor errors (due primarily to typing by hand)
- Comprehensive information in one place
ERP's automation features make it impossible for any error to disrupt your administrative processes.
Lower Operational Costs
The healthcare sector has struggled for years to maintain its low operating costs while still providing high-quality medical care. Hospitals need help in two key areas: labor costs and inventory.
Reducing labor costs and stock is essential to improve productivity and profit. Under a single shade, ERP databases that include all the sections, such as billing, invoicing, accounts, supplies, and inventory, will help reduce overhead costs.
Healthcare Process Streamlining
OPD, Medical Record Management, Emergency Services, Patient Records, and various specialties (radiology, cardiology, gynecology, etc.). These are just a few processes a healthcare organization needs to streamline.
Hospitals cannot function efficiently without precise alignment between these institutions. In addition, organizations must implement best practices and policies to improve the quality of life for patients and boost productivity. ERP allows executives to improve patient care by streamlining these functions.
Want More Information About Our Services? Talk to Our Consultants!
Patients' Safety and Satisfaction Improved
Patients diagnosed with an illness before expect the hospital to be aware of their past so they don't need to explain it again. A centralized system allows doctors to access the most recent patient information quickly. This includes their condition, allergies, previous data, or underlying medical conditions.
The doctor can quickly update the patient with all the data he has at his disposal and begin the next step of treatment. The patient is no longer necessary to rush from one pillar or another to the next to receive treatment. Doctors can save time by seeing more patients per day. Patients not only have a positive experience, but they also enjoy a smooth course from beginning to end.
The importance of ERPs in healthcare, especially hospitals, is evident from the above points. Despite the high number of patients, healthcare organizations can reduce administrative costs, eliminate costly errors, and improve patient management.
Simpler Compliance
ERP systems include tips and updates about upcoming regulations or compliance. The system helps eliminate issues related to non-compliance.
Medical compliance is crucial for a field that places utmost importance on people's lives. ERP software can detect any inconsistencies, disobediences, or non-compliance with standards. You can also help to prevent this once you have information about irregularities.
We all know non-compliance can have dire consequences and may be costly. Simple ERP implementation can save hundreds of thousands of dollars!
Procurement and Supply Chain Management
In the hospital context, supply chain management can include several practices to ensure optimum connectivity. In hospitals, the supply chain can be viewed as an auxiliary program facilitating other processes or activities.
A sound ERP system will help you to manage your supply chain better and order well ahead of time. You can better predict the needs of your patients with a better understanding and visibility in this area. Your suppliers will also be informed of the order in advance. It is imperative during pandemics when the supply chain can be caught off-guard by a sudden spike in demand.
Business Intelligence and Strategic Planning
This term describes the intelligent operation of your ERP to maximize your business. The top benefit you can achieve is to make the best decisions based on your ERP's insights. ERP Business Intelligence can provide you with accurate financial information and information about your hospital's departmental performance and budget.
What Challenges do Hospitals Face?
ERP has become necessary for all hospitals, from lowering operational costs to catering to increased levels of medical services. The sector needs software that can help it meet the demands and requirements of the business, especially when the number of requirements is so high. We can now focus our attention on the typical challenges hospital administrators face. The details are as follows:
Use Paper Checks and Manual Processes
The risk of manual or misreporting errors is high when hospital staff constantly juggle a large amount of paper. Compiling, analyzing, and sorting the data by hand takes much time. The lack of a central system to store this vital information affects everyone, including doctors and receptionists.
These procedures are inefficient and take precious time away from the staff that could be spent on providing quality care to patients. In such cases, an automated system is the only solution.
Fixed Asset Management
Hospitals have always found it challenging to manage their assets due to the variety of items they need to keep up. Let's review fixed assets to understand how an ERP can help you.
Fixed Assets: What Are They?
The tangible assets that an organization uses to generate revenue in the future are called fixed assets. This could be equipment or a property that is secured on a long-term basis. These assets do not need to be sold and will not turn into money. They are, therefore, different from inventory.
Fixed assets are the instruments, medical devices, and equipment hospitals use for surgery. The hospital has a variety of instruments and equipment. The administration faces a massive challenge when managing such an enormous room full of assets.
Medical Supply Management and Supplier Relations Management
Medical supplies include various devices and equipment used in hospitals to treat and cater to patients' needs. The hospital's management has long been concerned about the price of the supplies. Still, the suppliers also complain of an unfair deal in the form of financial compensation.
As a result, the healthcare supply chain can be viewed as an intricate system. Each stakeholder has an interest in protecting. The suppliers might want to promote a particular product because of their experience. However, hospital managers may prefer another option due to its affordability. These things can lead to misalignment.
In recent years, there have been several cases where the relationship between hospital administrators and suppliers has become strained. The organizations have also had to deal with the costs of supplies. SRM is the only way to reduce costs and improve service delivery.
Read More: Comprehensive Guide on ERP in Healthcare Industry For 2023
You Don't Know What You Spend
Again, this can be explained by the laborious manual work system prone to errors. Manually entering data can lead to errors that give a false picture of purchases and expenditures.
Healthcare facilities have been concerned about the manual entry of data for invoices, or bill amounts for many years. It could be increasingly difficult for staff to verify data accuracy in the absence of an automated accounting system.
This can lead to a lack of understanding about the true and accurate costs that the company is facing.
Poor HIPAA Compliance
One of the biggest challenges in the medical industry is maintaining compliance with HIPAA and secure payment data.
HIPAA is the Health Insurance Portability and Accountability Act. HIPAA is a law created to protect and restrict patients' health data.
What is the Purpose of HIPAA
HIPAA applies to business associates legally required to protect PHI (Protection of Health Information). It fulfills the primary functions of:
- Restriction of disclosure of patient health information
- Patients can access health records on demand
- Maintaining track of PHI activity for audit purposes, if necessary
The medical fraternity and sector have struggled to stay up-to-date with HIPAA rules that are constantly updated and changing. Non-compliance has resulted in heavy fines, penalties, and losing patients' trust.
The electronic data stored in the database of the hospital must also be safeguarded against any misuse by unauthorized parties. Storing electronic data helps to improve patient care, workflow, diagnoses, and treatments.
PHI includes all of this information, and it's essential to safeguard it against human error in manual processes. Misuse of these personal data can damage the hospital's reputation and cause significant financial and social losses.
Cybersecurity
The financial value of patient health information is enormous. Cybercriminals are attracted to this fact and want to use the information for their benefit.
US Department of Health and Human Services reports indicate that there have been more than 650 breaches of security in recent years. The majority of security breaches occurred for one of three reasons.
- Integration problems
- Inadequate healthcare IT departments
- The old systems aren't configured to modern technology and medicine
In turn, hospitals are now facing a decline in trust, a reduction in profitability, and an increase in overall costs. The hospital management must therefore pay immediate attention to cyber security.
Find an ERP
Many ERP systems are readily available. Some systems cannot handle all of the hospital's business needs. Finding a system suitable for all of the hospital's business operations can be challenging.
Personalization is another problem. ERP software offers many options, but not every feature will apply to your needs. You may leave out two valuable features while keeping the most important one. However, this level of customization can leave you with limited options.
If the staff at the hospital isn't well-trained, a complicated interface could be another problem. Untrained staff or poorly trained staff will lead to low utilization of software systems. It will eventually not produce positive results.
Many companies struggle to find the right software and settle for half-baked products. The latest trends show the progress in this area. There have also been attempts to develop ERP software that meets the needs of the medical industry.
Investing in software optimized to meet their needs and requirements can help overcome the problem.
What Are the Challenges That Erp Can Solve for Hospitals?
All hospitals strive to make a difference in the lives of those who visit them. What does it take for their systems to run?
How can ERP improve the operations of a hospital facing so many challenges? The challenges hospitals face are many and varied. Let's now understand what benefits ERP systems bring to the hospital.
Reduces Operational Costs
Data storing is made easy when billing, supply control, inventory management, and HR are integrated. Automation spares the employees of these departments from manual, laborious work. This process increases the efficiency of staff, lowering operational costs.
The manual tasks are replaced with automated ones, reducing the possibility of expensive errors in the entire business.
Fixed Asset Management Module
ERP systems can direct organizations toward efficient, fixed-asset management. ERP systems that include a reliable fixed asset management program ensure the proper maintenance of the hospital's fixed assets.
The system will also monitor whether the assets have been tested regularly and if they are fully functional in an emergency.
What is the Fixed Asset Management Module?
The majority of ERP systems offer a module for fixed assets management to accomplish the following goals:
- Maximize Asset Reliability
- Help predict asset failures and prevent them.
- Comply with all operational regulations
- Costs associated with asset use can be monitored
- Maintain and ensure proper operation of medical equipment
The system will also provide details on the depreciation rate and asset value. ERP software can integrate this module into other modules, such as General Ledger, to provide better control.
Strategic Planning: Helps
A successful ERP system will integrate all modules to increase productivity. The yield is improved when data from one department or unit of the hospital are fed into the database.
Profit and growth are used to measure the success of an organization. It is a known fact that increased productivity directly correlates with financial growth. An ERP can therefore be considered instrumental in strategically planning the organization's growth.
Better Financial Management
The ERP keeps track of all the components, from the costs for supplies to the patient bills. The ERP reduces errors in inventory management and administration with the aid of its various modules.
The system can also manage the purchase and distribution of products, saving time. Usually, doctors and staff were responsible for such tasks. These resources can now be used to perform more essential and fruitful jobs.
Patients and Doctors Working Together to Improve Patient Relations
ERP securely stores patient data. This information can then be accessed later by doctors, radiologists, and other medical personnel such as X-ray techs, etc. Data is sent to healthcare providers and helps them decide on the best course of treatment.
The patient does not need to complete any medical forms and does not travel from reception to the physician's cabin. With just a few mouse clicks, the doctor can access the data that has been updated in the system. Doctors can use the information in the system to guide patients with the correct medication.
Payment is another aspect of ERP that enriches patients' lives. Patients are impressed by the speedy payment and expedited insurance claim procedures. ERPs are instrumental in establishing trust with patients.
It Helps in Tracking Medical Tools and Supplies Inventory
Hospitals' functioning depends on the availability and use of medical devices, tools, and equipment. Medical consumables include syringes and ventilators to surgical cotton, bandages, gloves, and even surgical cotton.
The hospitals are crowded with people, all with different ailments and needs. You can never predict which illness will need attention. To prepare for such a scenario, hospital managers must always have sufficient medical stock. The medical equipment imported may also be in a different currency.
- Inventory management software makes it easier to manage multi-location stores and assess transactions in different currencies.
- Warehouse space can be used optimally, which will reduce operational costs.
- Inventory management makes it easy to track medical supplies. It provides insights into inventory levels and reordering, batch tracking, batch expiry information, and stock in and out.
- Automated reordering is possible, which helps to prevent the organization from running low on supplies. This type of inventory can be automated, allowing hospitals to receive frequently used items promptly.
- Issues with storage and warehouse can be quickly resolved within a few days.
The inventory module is also helpful in other areas, such as stock entry, integration between POS/finance, and stock allocation. Inventory management modules in ERPs can be used to automate processes and examine transactions.
Keep Compliance
ERP systems are handy when it comes down to complying with the regulations of the medical industry. Hospitals need to stay informed about constantly updated compliances to avoid penalties and fines.
Compliances also ensure improved patient safety and enhanced patient information and records security. ERP systems, for example, can alert the administration of HIPAA compliance.
Enhance Cyber Security
ERP systems are a great way to prevent sensitive patient information from falling into cybercriminals' hands and stop it from being abused or exploited. ERP systems can handle data protection very effectively by using protocols and best practices in data security, risk mitigation, attack prevention, and protocol for improving security.
Three ways hospitals can secure their data:
Multi Factor Authentication: Hospital administrators can select an ERP system that facilitates mechanisms to support multi factor authenticity. It would help to prevent any unauthorized access.
Automated: Enterprise Resource Planning Systems can work well with minimal human interference or disturbance. Automated systems allow users to manage business data without much manual work. It also helps to detect threats quickly and offers remedial actions against them.
Behavior Monitoring: It is essential to monitor both the behavior of humans and running applications. You can monitor unexpected activities and check-ins with this type of setup.
Conclusion
This article is intended to highlight the increasing relevance of ERP and its implementation within the dynamic and ever-evolving world of healthcare organizations. To remain profitable in the current environment, any organization or enterprise must implement and use efficient systems.
ERP allows a hospital or healthcare organization to leverage the current patient treatment and care facilities. It also empowers hospital administrators to achieve financial growth and build trust.
