Erp Systems in the Healthcare Industry

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Enterprise Systems in the Healthcare Industry

Due Date: November 25, 2011

Table of Contents
1. Introduction: Enterprise Systems in the Healthcare Industry 3
Enterprise Resource Planning 3
Customer Relationship Management 6
Supply Chain Management 7
2. Success of ERP in the Healthcare Industry 8
3. Legacy Systems and EDI in the Healthcare Industry 10
4. ERP Vendors in the Healthcare Industry11
5. ERP Implementations in the Healthcare Industry 16
6. Works Cited 20

Enterprise Systems in the Healthcare Industry
The healthcare industry has become one the fastest growing industries throughout the world, with annual expenditure consisting of 7.9% of the combined global GDP (Poullier, Kawabata, Hernandez, Savedoff, 2011). The rising cost of drugs and treatment, as well as the need for faster and more effective treatment has lead to the demand for Enterprise Systems in the Healthcare industry. Enterprise Systems are large scale, integrated software packages utilizing a common database to support business processes, reporting, efficiency, as well as providing accurate information throughout an organization in real-time. Enterprise Systems can be broken down into three main categories, each with their own benefits. These categories are: Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Customer Relationship Management (CRM).

Enterprise Resource Planning
Enterprise Resource Planning systems are software used in organizations to coordinate information in every area of a business (Monk, Wagner, 2009). ERP allows companies to work horizontally “across” business functions as opposed to working vertically (Monk, Wagner, 2009). This enables different organizational units, such as accounting, finance, and human resources to work together, increasing both efficiency and quality. With all organizational units having access to a shared database, information is able to flow more quickly throughout the organization. Furthermore, data integrity is maintained because information only has to be entered once, and it is then available throughout the organization. This free flow of information provides numerous benefits to businesses, and these benefits also apply to the Healthcare industry. In the Healthcare Industry, information is constantly on the move. Whether it be appointments, prescriptions, or a patient`s medical history, the need for the efficient flow of accurate information has never been greater. ERP systems allow Healthcare providers to have access to the most current information available. This is extremely important in the Healthcare industry where a quick diagnosis can mean the difference between life and death. ERP systems can aid in providing a quick diagnosis through the use of a centrally managed knowledgebase which Doctors and Pharmacists can consult to obtain the information needed to make a diagnosis (Mutt, 2011). Furthermore, once a diagnosis had been made, an ERP system allows the organization to work horizontally “across” departments (Monk, Wagner, 2009). For example, once a patient has been diagnosed, the Doctor may recommend that the patient stay overnight at the Hospital to receive treatment. Once this information has been entered into the patient`s record, a different department would be able to find an available room for the patient. They would have real-time information regarding the rooms because of the use of an ERP system. Once the patient was in the room, the nurses would have information about any specialty care needs the patient may have, such as allergies to certain foods, or any other conditions that the patient has that they should know about. This example shows how an ERP system`s ability to provide accurate, real-time information throughout the organization is tremendously useful – especially in the Healthcare industry where timeliness is of utmost importance. Real-time flow of information is not the only...
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