ERP: Complex, critical

Enterprise resource planning is a complex and critical area for hospitals. Business intelligence and human capital management are among the key elements to a successful ERP strategy. Human capital concerns include certification of nurses, education, recruiting, budgeting, real staff scheduling and patient acuity staffing, according to Ken Thompson, research director for KLAS. The need for business intelligence and analytics is being driven by providers’ financial concerns in these tough times. “(Business intelligence) will move into the clinical space as a way for (providers) to really measure performance, because the margins are so small that they need to have very accurate information on how well their hospitals are performing,” said Thompson. “One of the things that is a big help with ERP systems is materials management - tracking everything in the hospital, including physicians. Hospitals have low margins, but they also have very expensive capital equipment.” Real-time location tracking, barcoding, inventory and automatic ordering systems are therefore crucial to a high-functioning ERP approach.

Three Trends to Watch

Ken Thompson and Paul Pitcher of KLAS Research say the need for enterprise resource planning systems are being driven by several industry trends, including:

1. RECOVERY AUDITS: “Clearly, the RACs are on everybody’s mind and they’re going to play a major role here,” said Pitcher. As hospitals are defensively preparing for audits, they’ll be looking for “the ability to mine data and understand how the audits are impacting them.” Pitcher notes it’s not yet entirely clear how ERP will play a role in RAC issues, as the complex audits haven’t been introduced.

2. MEANINGFUL USE: One of KLAS’ researchers has found that most high-level people in hospitals are starting to move business intelligence into the clinical and the operational aspects of hospitals, Thompson said. “This is going to be a really important element not only for measuring performance but also for demonstrating meaningful use.”

3. SELF-PAY FUNCTIONALITY: “We’re seeing the self-service payroll functionality as a trend that’s popping up as well,” said Pitcher. The effects of self-pay on enterprise resource planning are seen primarily in the larger organizations where self-pay has been implemented.

Vendor Showcase: ERP aimed at saving time, money

McKesson
Horizon Human Resource Management
Horizon Human Resource Management offers a single, integrated source of HR Payroll data, simplifies management of the entire recruit-to-retire life cycle and correlates key areas involved in workforce management. It helps organizations control labor and HR administrative costs.

Pathways Materials Management
Links the entire supply chain into a single, integrated process. It provides both single- and multi-entity organizations with accurate, up-to-the-minute operational data so they can increase productivity and reduce overall costs.

Pathways Financial Management
McKesson’s Pathways Financial Management is an easy-to-use accounts payable, general ledger, project management and fixed asset solution that helps your organization streamline and automate processes, and enhance financial reporting.
Contact: Joanne Bleck, joanne.bleck@mckesson.com.

ACS Healthcare Solutions
ACS brings a programmatic approach to managing change and driving measurable performance improvement. From interim management through complete end-to-end implementation services for new projects or performing optimization services at any point in a product’s lifecycle, ACS can create new, enterprise operating models for multi-entity, multi-state healthcare systems as well as perform cyclical system upgrades.
Contact: Costa Alvanos at costa.alvanos@acs-inc.com; www.acs-hcs.com.

Connance Inc.
Connance Account Tools segment and prioritize self-pay accounts to improve cash recovery and lower operating costs. Connance Account Tools can also identify accounts that qualify for presumptive charity. Built specifically for healthcare business offices, Connance Account Tools are effective for all self-pay patients, including those that lack traditional financial profiles. Implementation of our tools includes collection follow up routines.
Contact: John Moroz, 952-303-4663, jmoroz@connance.com

ENIGAMI Systems Inc.
Problem - Data driven fiscal (UM), quality oversight (QA), absent in market. Product: Symptom self-reports by outreach IVRS, Web display portal. Data products: UM, QA, symptom monitoring, provider rating. No end user costs like other systems – only telephone for consumer, internet access for provider. Prevents graduated services. Customer: Insurer.
Contact: Clifton D. Croan, CEO,
www.enigamisystems.com

Billing Tree
Billing Tree Revenue Pack provides self serve online and phone payment portals for patients to pay their self pay balances 24 hours a day, increasing payment acceptance, patient convenience and incoming revenue. Quick implementation time, EZ training and low set up costs provide a rapid ROI.
Contact: Chad Probst: 602-443-5915, chad@mybillingtree.com.
 

User Reviews

“By implementing McKesson’s Pathways Materials Management, PMM Supply Tracking and Horizon Supply Source, Healthcare Materials Management Services (HMMS) generated significant contract savings through product and vendor standardization. McKesson helps us provide thousands of users with Web-based requisitioning, and handle millions of dollars in annual purchases across several facilities.”
– Mike Rosser, general manager, HMMS (Healthcare Materials Management Service)
“The ACS Enterprise Business and Administrative Solutions Practice has been supporting the city with featured enhancements, implementation application upgrades and ongoing process improvements. Each of our business areas speaks highly of ACS’ services and believes that no other firm we’ve used for consulting has provided us the high-level professionalism and expertise that ACS has.”
– LaKenya Barnes, service delivery manager, City of Carrollton, Texas

“We are excited about the prospects of working with Enigami Systems...(to) allow us more frequent, and cost effective monitoring of clients.”
– Mark Simon, president, Colorado Alliance
for Health and Independence