The healthcare sector is one of the fields with many operations. Streamlining all the operations and ensuring everything is in order can be complex. For instance, registering patients, admitting them, and processing invoices up to the time they get released is a whole complex and time-consuming process that require proper planning.
However, an ERP healthcare system can simplify the whole process and streamline all operations. This makes work easier for healthcare staff and patients, too. Patients can even get to get the required healthcare services faster than ever. But then, what is an ERP system? What does it take to develop an ERP? What are the ERP must-have features? And what is the cost of building a solid healthcare ERP system? Get these and more insights from this guide.
What is a healthcare ERP system?
A healthcare enterprise resource planning system is a software solution that simplifies operations in a healthcare facility. Through such a platform, healthcare staff can access data and process the data as needed, thus streaming and speeding up the operations. Ideally, it is a centralized software solution that connects other departments in a healthcare facility, from human resources to accounts, to inventory management, and to IT, among many other departments. This streamlines operations and communication, ensuring everything is in order.
Benefits of a healthcare ERP system
Developing an ERP healthcare system comes with many benefits. Below are some of the top reasons why developing a healthcare ERP system is a viable idea:
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Streamlined inventory management
A healthcare facility has an inventory section that handles different medical items. In this case, managing the supplies, sales, and refills can be a complex and time-consuming task, which can even lead to some errors such as overstocking, understocking, or wrong ordering processes. However, an ERP system streamlines inventory management processes by automating inventory management tasks. Healthcare staff can conveniently plan and restock when necessary, ensuring continuous service delivery.
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Improved patient care
A solid ERP system enables healthcare staff to manage and deliver their services properly, ensuring customer satisfaction. There are any ways through which a healthcare ERP system enhances patient care. For instance, patients don’t have to wait for long in queues, waiting to be attended to. Again, the system enables healthcare providers to access patient medical data and history easily for streamlined decision-making. Communication is also streamlined with a healthcare ERP system, thus making it easy for different teams to deliver their services to respective patients. Most importantly, a healthcare ERP system creates a streamlined workflow, ensuring patients are admitted seamlessly until the discharge time. This creates a better environment, leading to patient satisfaction.
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Highly effective and improved productivity
A healthcare ERP system enhances efficiency, which improves productivity in different ways. For instance, by automating most tasks, the system eliminates manual workflow processes, which can be time-consuming, costly, and tiring.
The system also minimizes errors such as double data entry or wrong data entry, thus enabling the healthcare team to work efficiently. By tracking inventory management, the system ensures the proper allocation of resources to eliminate delays and irrelevant expenses. Most importantly, the healthcare ERP system facilitates smooth workflows across departments within a healthcare facility, thus eliminating inefficiencies and delays.
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Regulatory compliance
The healthcare sector is one of those fields that follow strict rules and regulations. Failure to meet the set rules and regulations can lead to service disruptions in a healthcare facility. A healthcare ERP system comes with inbuilt features that ensure the facility follows the set rules and regulations promptly. Other features ensure patients’ data is secure and confidential, which is part of the set rules and guidelines governing a healthcare facility.
Most importantly, the system ensures streamlined auditing through reporting automation. This ensures the system is updated and fully compliant.
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Better financial management
Managing finances is an integral part of a healthcare system. In this case, a healthcare ERP system streamlines financial management processes through different approaches. For instance, by centralizing the financial database, it becomes easy for the staff to track expenses and manage the budget. The system also automates invoicing and billing processes, thus eliminating some financial-associated risks.
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Helps in making informed decisions
Making informed decisions is vital in a healthcare facility. It enables the staff to have a proper overview of all the operations and updates regarding workflow and processes. The healthcare facility management and all staff can then make better decisions concerning daily activities and the overall well-being of patients.
ERP healthcare system must-have features
When building a healthcare ERP system, the following features are vital. They make the system fully functional, ensuring the healthcare staff can handle all the tasks and processes seamlessly:
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Patient management
The patient management feature plays a pivotal role in keeping patient records, medical history, scheduled appointments, and other details. This makes it easy for healthcare staff to access these records for the needed actions in a smooth manner.
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EHR – Electronic Health Records
With the EHR feature in a healthcare ERP system, it becomes easy for healthcare providers and patients to access and update patient data in realtime.
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Scheduling and Appointment manager
Appointments are an integral part of the operations in a healthcare facility. Through this feature, healthcare service providers can track and manage schedules effectively, ensuring that patients get timely reminders to follow up on their health statuses.
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Supply chain management
Supply chain management in a healthcare facility ensures effective medical supplies, cost controls, and smooth procurement processes. In this case, make sure the healthcare ERP system has a solid supply chain management feature to streamline stock management, tracking of already purchased orders, managing vendors, and forecasting the demand rates. With this in place, the healthcare facilities can now reduce wastage, minimize stockouts, and ensure the core resources are always available when needed.
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Cloud-based ERP software
Cloud-based solution is a game changer in healthcare facilities. This feature enhances flexibility, scalability, and cost-effectiveness when delivering solutions in healthcare facilities.
Through the cloud-based healthcare ERP solution, healthcare professionals and staff can easily access patient data in a secure manner at any given time and from anywhere. This minimizes maintenance costs since there is no on-site infrastructure. What’s more, a cloud-based ERP solution ensures all data in the system is highly secured, plus compliance requirements.
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Billing and financial management
Handling finance-related tasks such as payment tracking, invoicing, billing processing, and insurance claims processing, among many others, is inevitable in a healthcare facility. In this case, the billing & financial management features in the healthcare ERP simplify all the financial tasks, which streamlines operations.
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Pharmacy & inventory management
This feature helps streamline operations in the pharmacy within a healthcare facility. Through this feature, it becomes easy for pharmacists to restock the needed stock, manage prescriptions, and track medication inventory in a streamlined manner.
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Laboratory management
Managing tests, tracking samples under tests, and producing test results reflecting the respective patient are some of the core tasks within a laboratory setting. A laboratory management feature helps automate all these tasks within a healthcare facility, thus making work easier for lab technicians.
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Reporting & analytics
Making informed decisions is an integral part of a healthcare facility. That is why it is important to integrate the reporting and analysis feature in the healthcare ERP system to help the staff within a healthcare facility track performance and implement the emerging trends accordingly. This helps in getting insights on steps or actions to take to ensure everything is in order.
The reporting and analytics feature should be solid enough to deliver real-time analytics through customizable dashboards to help the staff track the patient’s overall well-being. This helps in making informed decisions on matters of operational efficiency, financial planning, and proper utilization of resources.
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Regulatory compliance
Healthcare organizations are among the top entities that must follow the set industry-specific rules and regulations. That is why it is essential to integrate features that enhance regulatory compliance to ensure proper compliance reporting, audit trails, security measures, and data privacy measures are in place.
These features help healthcare facilities achieve a high level of confidentiality, especially on matters of patient data, accessibility of patient data, integrity, and above all, stay on the safe side of the governing rules and regulations.
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Integration
Include the integration feature into the healthcare ERP system to enhance its functionality performance and streamline operations. For instance, integrating the system with medical billing software simplifies all the transaction processes. Besides, integrating the system with other softwares accelerates operations while minimizing many errors.
Step by step developing a Healthcare ERP System
Developing a healthcare ERP system can be a complex process, especially where you lack adequate tech skills and experience. However, you can easily develop a solid and fully functional healthcare ERP system by following the steps below:
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Research & analysis
- This is the very first phase of developing a healthcare ERP system. It involves identifying business needs so that you can set a solid basis for your ERP system. Under this phase, perform the following tasks:
- Do a thorough business analysis – this is all about evaluating already existing business processes and their overall service delivery. With the insights collected, you can determine areas that need more work, whether you need to integrate with other solutions or perform process automation to streamline operational efficiency.
- Collect stakeholder overviews – involving the stakeholders will help you identify their needs and preferences. The insights you get will help shape the ERP system, ensuring it is a viable concept in the end. Stakeholders, in this case, are managers, business users, and related parties.
- Analyze the existing systems & data – the insights you collect after analyzing the existing systems will help you point out the gaps and how the ERP system can fill such gaps.
- Check any compliance requirements – the healthcare sector is wide. Therefore, make sure you understand the industry-specific rules and regulations you need to meet and design a way to adhere to these requirements.
Once you complete this phase, you will have all the basics that will ensure your ERP system aligns with the business goals and objectives and that the whole concept is viable in all aspects.
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Define the system requirements
At this step, you will need to list all the requirements necessary to actualize the process of developing a healthcare ERP system. These requirements include the following:
- Software needs – these are the software requirements that will enhance the functionality of the ERP system. Examples include web server requirements, databases, and operating systems.
- Hardware needs – these are the hardware requirements of the ERP system that ensure the IT resources within the organization are compatible with the ERP system. Examples of hardware requirements include network infrastructure, storage facilities, and server capacity.
- Reporting & analytics needs – this involves identifying areas within an ERP system that need advanced analytics capabilities and real-time reporting. This is important in helping organizations analyze the insights collected and make viable decisions.
- Integration needs – point out the needed integrations into the ERP system to enhance the system’s functionality and overall performance. Accounting software solution is an example of integration requirements when developing a healthcare ERP system.
- Scalability requirements – point out areas that need to be scaled in your healthcare ERP system It can be the size of the data, transaction volume, or number of users. This ensures the system grows and scales accordingly.
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Vendor selection
Once you have completed the research and you have defined all business requirements, the next is to select the right vendor to help you implement the ERP systems effectively. When choosing the vendor, consider the following aspects:
- Industry expertise – go for a vendor who is experienced in your area of specialization. Such a vendor understands the dynamics of the specific industry, including the unique business requirements, related challenges, and appropriate solutions.
- Solution fit – choose a vendor whose solutions align with the goals and requirements of your entity. Therefore, make sure you analyze the functionality and ability of the ERP system. It should comply with the set guidelines, plus it can integrate with other systems seamlessly.
- Scalability & flexibility – choose a vendor that offers scalable and flexible solutions to accommodate changes within your healthcare ERP system.
- Implementation & support – check the methodology and license model when choosing an ideal vendor for your healthcare ERP system. Check for qualifications and support services to ensure you can implement your healthcare ERP seamlessly without any challenges.
- Cost – a healthcare ERP system implementation comes at a cost. That is why before you choose a vendor, factor in the costs such as license, software costs, regular maintenance costs, and customization costs, among many other associated costs. This will help in planning your budget well.
- Reviews and testimonials from past clients – finally, reach out to other users who have experience with the vendor in their ERP system. Ask for their overall experience and service delivery. This will enable you to choose a vendor that won’t disappoint you along the way.
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Designing
Designing the healthcare ERP system is all about addressing the unique business and technical needs. Here, you will need to define the functionalities and modules required to complete the healthcare ERP system implementation. Perform the tasks below after designing the system architecture:
System configuration –with the system architecture in place, you will need to establish the system configuration. These include performing activities to ensure every process and setting aligns with the business needs. This means consulting with the teams involved to make the right decisions when performing system configurations.
Data migration –next, you will need to figure out data migration requirements to ensure streamlined data migration and configuration to the new ERP system.
Below are effective ways through which you can figure out data migration requirements as part of implementing a healthcare ERP system:
- Perform data inventory to point out the needed data in the new system. This ensures accurate and proper migration of the significant data.
- Categorize data dependencies based on different parameters such as orders, products, and customer relationships. This will help you identify any other data migration that is essential based on these dependencies.
- Analyze data quality to ensure data accuracy, consistency, and completeness. This will help you point out any other data migration requirements to eliminate any of these issues for proper system functionality.
- Data mapping to understand the relationship between the old and new ERP systems.
- Complete the dry run process which involves testing the process of data migration. This is important to ensure all the needed data will be migrated successfully to the new system without any challenges. Of course, the dry run process occurs before the actual data migration process.
Proper data migration steps in a healthcare ERP system implementation ensures businesses plan and tailor the system’s functionality well to achieve the core business goals and objectives.
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ERP system customization & testing
Finally, this is the phase where you get to customize and tailor your ERP system to meet the desired functionalities and performance. The major tasks here include modifying existing features & functionalities, adding new features to achieve certain functionality, and designing the system to follow a specific business process or workflow.
Again, you will need to integrate the healthcare ERP system with other platforms or applications to enhance operations. In this case, you will need to analyze the already existing systems, review the integration requirements, create practical solutions, develop, test, they deploy them accordingly. The integrations will ensure businesses deliver the services effectively without disrupting other operations.
After successfully customizing the system and performing integrations, you will need to test the system’s effectiveness before making it available to users.
Testing ensures all the integrations are in perfect place, the functionalities are correct, and the system performs as desired. When performing system testing, identify test cases, analyze the results, correct where necessary, and retest again. This process helps businesses eliminate risks that could arise after deployment. Rectifying such risks when the system is already in operation can be a costly and complex process.
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Deployment & continuous support
With the customization and testing phase complete, you can now deploy or launch the healthcare ERP system to streamline operations within a healthcare facility.
Here is what you need to do when deploying the healthcare ERP system:
User training– since this is a new system, it is vital to train all the users on how to use and interact with the system, ensuring they meet the set goals. Again, training helps users get used to the system and gives them the opportunities to use the system to the maximum.
Prepare the live environment– here you need to test the environment thoroughly before making the system available fully to the users. This is to ensure the deployment environment is ready and it aligns with what users expect. This step is crucial as it will help identify issues and find practical solutions before making the system available to users.
After this, you can now deploy the system and start enjoying the many benefits and functionalities it has to offer.
Post-deployment support – after ERP system deployment, that is not all, you need to keep monitoring the system and modifying it where necessary. This means conducting regular maintenance and offering the needed technical support and training.
Healthcare ERP system implementation challenges
While a healthcare ERP system comes with many benefits, the same process has inevitable challenges as follows:
- Resistance to change among employees
- Extreme costs and ROI
- Data migration and data security
- Customization complexities
- Data inconsistency leads to many errors
- Regulatory compliance
While these challenges may impact the system’s service delivery, you can evade them by planning effectively and involving the right team from Aalpha Information Systems, India, that understands the requirements of healthcare industries, challenges, and how to overcome them.
What is the cost of building a healthcare ERP system?
Implementing a healthcare ERP system is a complex process that attracts extreme costs. However, the overall costs of building a healthcare ERP system vary depending on the complexity, integrations, type of development team, features & functionalities, and number of users.
Other factors impacting the costs of developing a healthcare ERP system are vendor costs, ongoing support and maintenance, user training, and licensing costs.
With all these factored in, the costs of healthcare ERP system development can range between $100,000 and $500,000 or even more depending on the aforementioned factors.
Conclusion
Healthcare ERP system development is a viable business idea. Such a system simplifies operations in healthcare facilities, which are often busy and complex in many aspects. The benefits are many, including streamlining operations, reducing operational expenses, and streamlining communication, which improves patient care.
The challenges will always be there, but with the right development team, proper budgeting, required resources, and proper planning, you can easily develop a healthcare ERP system, a game-changer solution in the healthcare industry.
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