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According to a report by Grand View Research, Inc., The US healthcare ERP market size is expected to reach USD 2.1 billion by 2025, registering a 5.6% CAGR from 2019 to 2025. But what is driving this change? To say that the industry has been disrupted in recent years is an understatement. This disruption has resulted in a need for easy access of data for the newly-remote workforce, cost-effectiveness, increased security, and better patient outcomes. To achieve these goals, the answer was clear: adopting new, cloud-based ERPs. However, the historically slow-moving healthcare industry has begun adopting cloud ERPs with a gusto rarely seen in previous years. So, what has led to this acceleration?
Ease of Access
Cloud ERP systems provide organizations with a centralized location for all data that can be universally accessed. Most Cloud systems allow easy mobile accessibility, which eliminates restrictions on employee location to access a company’s platform for HR, Finance, Reporting, etc. In addition, organizations can integrate AI capabilities into their ERPs to improve efficiencies and reduce costs.
Security
By the end of 2020, security breaches cost six trillion dollars for healthcare companies, and there is a 75.6% chance of a breach of at least five million records in the next year. Healthcare organizations can reduce the risk of leaking confidential data and negative publicity by introducing a new, secure ERP system. When working with a cloud-based ERP, healthcare organizations can rely on their provider’s security team to ensure their data remains secure. In addition, most cloud vendors typically store duplicate backups of their client’s data in distinct locations.
Budget
As healthcare organizations complete their EMR implementations and get closer to interoperability, their focus has shifted towards their business and HR systems. Unfortunately, in many cases, these systems have not received the same attention, may not be on the current version, and are costly to maintain on-premise. The cost savings associated with ERPs can include scenarios like:
- Cost savings in storing on-premises servers if utilizing a cloud solution
- Introducing RPA (APIs, bots, or machine learning) to alleviate administrators of mundane tasks and reduce human error
- Optimization and automation of backend processes, including budgets, payroll, and inventory management
Retiring On-Premise Systems
As cloud ERPs become more pervasive, specific on-premise systems have begun discontinuing support, forcing clients to re-evaluate their chosen solutions. This phasing out of on-premise servers, while beneficial to some, has created an environment in which healthcare providers must make difficult decisions and determine what is best for their organizations and their patients.
Better Outcomes for Patients and Staff
Behind every decision a healthcare organization makes is one clear motivation: helping create better outcomes for patients and staff. From implementing AI to reduce clinical errors to creating an environment in which patients can more easily access their records, make payments, and more, ERPs allow for greater patient outcomes across the board. In addition, ERPs increase employee engagement and participation. Healthcare professionals and medical staff benefit when bots, machine learning, and business process automation are implemented. Their work-life balance is elevated when they have access off-premises to everyday working tasks without human intervention. With their mobile phone or home desktop, they can:
- Get answers to HR, financial, and business questions
- Understand and select benefits during open enrollment
- Join a project team and apply for internal job openings that were suggested to them
- View patient records from anywhere
- Request leave, report time off, or enter payroll hours
- Update personal records virtually from any location
- Complete performance tasks like goal setting, annual reviews, talent assessments, calibrations, succession planning, and more
Next Steps
If your organization is interested in implementing an ERP, or you are in the midst of implementation, here are some key things to consider:
- Have you assessed your existing system to identify the full scope of your needs? Each ERP is created differently and can be adjusted to suit different needs, so having a clear picture of your requirements is critical.
- Have you evaluated all of your options and made an informed selection based on the costs associated?
- What does your support model look like?
- What is the process for discontinuing the relationship, should you choose to do so?
- How much effort will be involved to implement?
- Do you have the right resources for support?
- What is the timeframe for deployment?
- How will you handle change management?
- Once your system is deployed, do you have the bandwidth to train your team?
- Do your end-users understand the expectations?
- What are the capabilities of your new system that your team needs to be able to utilize?
- What can be optimized as you progress?
Having an experienced partner to assist with an ERP implementation, from pre-planning through elevation, can make all the difference in a successful implementation.