ERP Changes in Hospital Financial Management

While ERPs are often seen as a fancy software system for managing different aspects of your operations, sometimes events happen in the industry which bear in mind the need to remember that an ERP is an enterprise resource planning system. For hospital financial management teams, the industry-wide ERP changes motivated by the 2010 ACA are creating several new pain points creating innovation according to a March article in Healthcare Finance News.

Integrated Communications

Affecting both hospital-physician relationships and customers’ EHRs, integrated communications in your hospital have to be both secure and effective. With so many different cloud and in-house deployments, ERP and EHR integrations and more technological issues at play, the ACA’s requirements for Electronic Health Records is drastically affecting hospitals of all sizes throughout the United States. Additionally, the requirements “for accountable care organizations (ACO), bundled payments, medical homes, and value-based purchasing – on the part of hospitals” creates many financial and operational hurdles which are driving physicians and hospitals closer together. These close relationships create a higher need for ERP integrations between different clinics, hospitals and private offices within a hospital administration.

Economy of Scale

As is true of all bureaucratized institutions, often the only way to compensate for increased regulatory costs is to increase the size of organizations. Thus, hospital organizations can create specialized ACA compliance units, while freeing the smaller units within the organization to focus on providing the best quality of care. Because of the need for the economy of scale, this is driving mergers, acquisitions and affiliates, according to the article. Mergers, acquisitions and affiliate relationships each bring their own unique set of enterprise resources which need to be planned, integrated and unified in order to work efficiently across the hospital management system.

ERP Technology is Going Strong

In the need to consolidate and meet reporting/operations standards, the technology behind ERP programs is in more need now than ever before. A well-implemented ERP delivers management and document systems to staff, employees and management in order to reduce errors, increase efficiency and meet compliance requirements. If your current PeopleSoft implementation is not meeting the standards you need to be ACA compliant, please contact us.

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