Integrating ERP Systems for Clinical and Business Operations in Healthcare

Waqas engaged in a conversation with Asia Business Outlook magazine in order to answer queries on how ERP systems can be integrated into existing clinical and business operations in the healthcare sector. He has 23 years of experience in IT and started his career with Lakson Group. He has worked as a functional and technical consultant and has also worked in the service management domain in Phillip Morris Pakistan. For a decade he has been working in Liaquat National Hospital and for the last four years as the Head of IT. Liaquat National Hospital is one of the biggest hospitals in Karachi, Pakistan.

How does the integration of ERP with inventory management systems improve healthcare operations?

Firstly, there has to be a clear understanding of what back-end and front-end applications are. When we talk about back-end applications, we usually call them ERP because they deal with business applications like Financials, Supply Chain Management, and Human Capital Management. These are the applications that are generally called back-end applications or ERP. The front-end applications on the other hand are those that are responsible for the main business at front offices, which in the case of healthcare organizations is patient care, healthcare management, and related services. They basically ensure the provision and delivery of quality services and care given to patients. So, all the applications that are related to patient services like appointment management, consultancy management, pharmacy management, laboratory management, reporting systems, etc. are therefore called front-end or clinical applications. It is very critical that accurate data is integrated and real-time syncing is important as well. If accurate data is integrated with the back-end systems, decision-making becomes faster and better. Like, inventory is managed through ERP, but it is distributed through front-end inventory management applications. Here, accurate data can provide immense information for planning and forecasting in healthcare services and improve overall patient care outcomes. For example, in the SCM processes, there is an important process called reorder level and calculating that rightly is crucial for initiating and processing purchase orders. Agility and accuracy in this whole process directly impact patient-care services.

How can real-time data synchronization between clinical and business applications enhance decision-making in healthcare?

If the integration time is not set properly and is happening at irregular time intervals, the usefulness of the entire system will be lost. The real-time syncing of data is of utmost importance in this regard. The inventory management teams and the supply chain management teams always hope to get real-time data from the systems so that they can execute descriptive analysis for any kinds of deficiencies that are taking place in the process. For example, as we know that over stocking of inventory is harmful for business operations and finances; therefore real-time monitoring helps prevent the purchase of excess stock. This especially needs to be taken care of in the healthcare sector because every medicine has a specific expiry and accurate data input into ERP systems can help the management in making informed decisions on stock expiry and reorders. Following this becomes necessary to ensure the optimum level of patient safety. This is also important from a regulatory and compliance perspective. Right integrations of systems provide the management and the medical experts with the right information and also ensure an enhanced level of patient safety. 

In what ways does integrating ERP finance with healthcare applications streamline financial operations?  How does real-time financial data from clinical systems impact budgeting and financial planning in healthcare?

The core aspect of the financial system is the chart of accounts. It acts as a master data repository for any given organization irrespective of the industry they belong to. An efficient and right-sized chart of accounts must be implemented in the ERP systems with the help of financial experts in order to create GL codes, that efficiently handle the needs of healthcare organizations. Here it is worth mentioning that creating the accurate chart of accounts is somewhat tricky in the healthcare sector. It is because of the inflow of huge amount of data from clinical applications which need to be summarized in the right manner for the financial experts to act on them efficiently and effectively. Segregating accounts in the main ledger and sub-ledger system with the help of experts is key to getting summarized and detailed reports swiftly and effectively for making timely business decisions.

An efficiently integrated system always gives users the power to have financial insights like for revenue cycle management, information about running bills, and information about cost and profit centers. Real-time financial data from clinical systems enhances budgeting, and financial planning by enabling accurate forecasting, dynamic adjustments, operational efficiency, and financial transparency.

What are the potential risks associated with integrating healthcare and ERP systems, and how can we mitigate them?

Once the attack surface for an IT infrastructure is increased, the systems become prone to cybersecurity threats. Healthcare organizations are in the continuous process of integrating their healthcare application with medical equipment and medical devices in order to get an accurate and quick inflow of data in real-time. As integration among medical devices, clinical applications, and ERP increases, attack surface, risks and potential breaches to the systems also increase and it is a challenge for every IT department and its security experts. Keeping data secure, and maintaining patient privacy and confidentiality is the prime responsibility of every head of IT and in the healthcare sector; its importance has increased exponentially. For this, it is pivotal to invest in data security technologies continuously along with stringent implementation of security policies and end-user training.