ERP in Healthcare: the Role, Key Considerations, and Challenges

Modern healthcare changes regularly, advancing forward in massive strides and embracing technology. That means ERP in healthcare is no longer a potential tool of a distant future but a real, currently relevant solution.Any medical institution that wants to use its resources more efficiently and plan out its operations can adopt ERP software to do so. Small wonder that the global healthcare ERP market, estimated at $7.42 billion in 2023, is expected to grow 7.2% yearly by 2030.However, in order to get the most out of your healthcare ERP, you need to understand its role in the medical field and how to introduce it into your ecosystem. So, today JetBase will introduce you to the potential challenges of ERP usage and ways to navigate them. We’ll also talk about how AI can boost ERP in healthcare industry for the best results. Let’s dive right in.What is ERP in Healthcare?First, let’s quickly define ERP, an Enterprise Resource Planning solution. So, what is ERP in healthcare like? Hospitals use it to improve resource distribution, streamline data management, and enhance decision-making. These systems can also suit other businesses in the medical industry, including pharmaceutical companies and insurance firms.A hospital ERP can help with procedure scheduling, patient registration and management, and medication procurement. This directly reduces the daily expenses of the healthcare institution and the per-patient cost of operations. In addition, it can bring some structure to the fast-paced environment of emergency rooms and hospital departments.ERP Implementation in Healthcare: Key ConsiderationsBefore you dive headfirst into implementation, there are some things you need to take a close look at. In addition to the plentiful benefits of ERP in healthcare, you must also remember that the software brings about substantial change. So here are a few points of impact that you can use to prepare a medical institution for ERP integration the right way.Keeping Patient Info PrivatePatient info has to be protected at all costs, not just because of HIPAA but to uphold the hospital’s reputation and keep medical records safe. In 2024, there were more than 275 million compromised healthcare records in the US—a 63.5% increase from the previous year. That’s why an ERP in healthcare must feature all the necessary precautions for patient info, including technical security features. We’ll talk more about this below, but privacy in medical software is one of the crucial points.One consideration explicitly related to ERP is your cloud storage provider and whether they have access to patient data, even encrypted data. It is essential to set up gateways that prevent unauthorized viewing or editing of this information.Providing Staff OnboardingIntroducing a new technological element can complicate the already busy employees’ work schedule. To make sure you’re taking advantage of your ERP, you’ll have to provide plentiful training and onboarding sessions.Getting the basics for general use will be enough, though you ideally need at least a few people who can understand the specifics and run the entire system. That way, you can have the knowledge passed down while also having people in charge of the ERP running properly.Comparing Initial Cost to ROIWhile getting an ERP for hospital operations has many benefits, it is an admittedly costly endeavor. Before you go ahead, calculate how much you’ll spend on the software, the training, the integration in your ecosystem, and any other aspects of the project. Then, assess if that cost will eventually be recouped through your savings on resources and daily work.Ideally, of course, you want the ROI to be high and make the initial investment worth it for you. In order to ensure that, your ERP should come from a team that prioritizes your needs and works efficiently, and your system must be prepared for its introduction. Basically, finding ways to minimize the upfront cost will help make the ERP a more lucrative project.Potential Challenges in ERP ImplementationAs with any case where a new element is introduced into a complex ecosystem, ERP implementation in healthcare has its own roadblocks that can disrupt things. This section will introduce you to the typical challenges that healthcare institutions and businesses face with it. We’ll also give some tips on overcoming them and finishing the process successfully.The core problems are:Making your ERP legally complaintConnecting it to older devices and softwareEnsuring longevity and stabilityRegulatory ComplianceAs our earlier article on HIPAA highlights, dealing with legal regulations can be an extra complication for software development. ERP is no exception here, as you’ll be working with hospital data, which is sensitive and protected by HIPAA. While we’ve already pointed out that you need to keep patient information private, that’s not all.Developers must also implement high-level encryption, role-based authorization, and auto-logout features. These are the baseline levels for keeping your ERP system compliant with HIPAA and similar legislation that affects a hospital ERP.Integration with Older SystemsMany hospitals are still running outdated software, which isn’t just a risk to patient information but a problem when it comes to integrating new solutions. An off-the-shelf ERP may simply lack the proper modules to integrate with last-generation devices and solutions.The answer here is to build a custom ERP system, if possible, one that accounts for all legacy systems in the hospital. It’s also vitally important to verify that all components are linked up properly and work as intended. Basically, QA is king for ERP in healthcare.Creating Resilient ArchitectureYou must do everything to minimize downtime and disruptions during your ERP’s operation, which means building the infrastructure for it and designing it to withstand any load. Depending on the size of the healthcare institution, this can be somewhat challenging to accomplish.Making a resilient hospital ERP is easier with a dev team on your side, as well as some DevOps experts. Plus, opting for cloud architecture is ideal here to ensure steady uptime and regular data backups. As long as considerations are made for privacy and security of patient information, this is the optimal setup.The Role of AI and ERP Combination in HealthcareA good way to boost your ERP in healthcare is to use AI features to enhance the software’s effectiveness. Using AI analytics, you can plan resource use more efficiently and streamline day-to-day scheduling and operations. Moreover, AI can be trained to automate medication procurement, patient registration, and even basic interactions related to staff management.However, proper AI implementation is essential to ensure that private patient data is never at risk. This is where the aforementioned encryption and tiered access systems come in, as they will ensure that no identifiable information leaks.Need Help with Implementing ERP?It’s plain to see that ERP implementation in healthcare is a complex process but one that brings numerous benefits to those who do it. Now that you’ve read our guide to introducing ERP software in a healthcare setting, you can avoid the typical pitfalls that hospitals run into. However, if you want to guarantee that you get the most out of your ERP, you can ask for professional help.JetBase has spent more than a decade delivering custom solutions that transform and upgrade businesses in a variety of industries. Our team is professional and provides transparent communication and a high level of skill. We also have experience with medical software, making us the perfect choice for healthcare ERP implementation. So, if you seek reliability and high quality, contact us — and let’s get started.

ERP in Healthcare: the Role, Key Considerations, and Challenges

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