EHR AND ERP INTEGRATION. January 25, 2018

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1 EHR AND ERP INTEGRATION January 25, 2018

2 Your Instructor

3 Agenda Introduction to EHR and ERP EHR and ERP integration opportunities Evaluating the potential impact of EHR and ERP integration to your organization s strategic goals Integrating with best practices Questions

4 INTRODUCTION TO EHR AND ERP

5 Introduction to EHR Systems An electronic health record (EHR) is a digital version of a patient s paper chart. Real-time, patient-centered records that make information available instantly and securely to authorized users. EHR systems can: Contain a patient s medical history, diagnoses, medications, treatment plans, immunization dates, allergies, radiology images, and laboratory and test results Allow access to evidence based tools that providers can use to make decisions about a patient s care Automate and streamline provider workflow Built to share information with other health care providers and organizations

6 Benefits of EHRs EHRs and the ability to exchange health information electronically can help you provide higher quality and safer care for patients while creating tangible enhancements for your organization. EHRs help providers better manage care for patients and provide better health care by: Providing accurate, up-to-date, and complete information about patients at the point of care Enabling quick access to patient records for more coordinated, efficient care Securely sharing electronic information with patients and other clinicians Helping providers more effectively diagnose patients, reduce medical errors, and provide safer care Improving patient and provider interaction and communication, as well as health care convenience Enabling safer, more reliable prescribing Helping promote legible, complete documentation and accurate, streamlined coding and billing Enhancing privacy and security of patient data Helping providers improve productivity Enabling providers to improve efficiency and meet their business goals Reducing costs through decreased paperwork, improved safety, reduced duplication of testing, and improved health.

7 Trends in EHR Adoption % Acute Care Hospital EHR System Adoption : % 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Basic w/o Clinician Notes Basic with Clinician Notes Comprehensive

8 Introduction to ERP ERP (Enterprise Resource Planning) systems allow for automation of processes in order to reduce risk and increase efficiency. Typical ERP Modules for Healthcare consist of: Human Resources Integrated HR information system and payroll solution supports an organization's business goals by helping to automate complex workforce functions and centralizing financial reporting Supply Chain Strategic supply sourcing and operational savings across the healthcare supply chain: Strategic Sourcing Point of Use Supply Chain Management Fiscal Management A financial solution that helps streamline and automate labor intensive accounting functions, analyze data and identify cost savings throughout the enterprise.

9 Benefits of an ERP System The implementation of enterprise resource planning in the healthcare industry may lead to: Optimized business processes Improved information flow and communications among departments and doctors, providing for timely and accurate patient care Enhanced operational efficiency for administrative staff, support personnel and physicians Integration of real time data in clinical systems and multidirectional data flow Reduced operational costs Improved decision making capabilities for patient care and resource management Overall, ERP systems can enable healthcare organizations to sharpen their focus on their primary mission: providing patients with the right care at the right time.

10 ERP Systems: Non-Healthcare Sales Order placement, scheduling, shipping, and invoicing Customer Relationship Management (CRM) Capture and maintain customer relationships, improve customer experiences, and evaluate knowledge management Corporate performance and governance Streamlined control of corporate services Production (PLM) Planning and optimizing the manufacturing capacity and material resources. Evolved from the MRP

11 ERP in Healthcare: Future Use Enterprise Asset Management Efficiently and sustainably manage assets lifecycle, improve asses usage, and cut costs with analytics Business Intelligence Analyze data and convert to actionable information

12 ERP System Market Drivers Business requirements require organizations to adjust strategic operations with seamless turnaround time Changes in regulations Changes in reimbursement Market continuing to focus on outcomes as it shifts to a consumer driven industry

13 Trends in ERP for Healthcare EHR adoption 90% + ERP adoption 27% ERP Software Trends Security Telemedicine Cost Reduction Research and Prevention ERP Software Implementation and Upgrades

14 EHR AND ERP INTEGRATION OPPORTUNITIES

15 Challenges of Non-Integrated EHR and ERP Information rarely formatted, standardized or integrated Point-of-use supply data is not always collected accurately or maintained in EHR Clinicians asked to manage supply data collection tasks without understanding why Multiple stand-alone systems are common Disparate data manipulated in manual excel processes

16 Integration Benefits Cleaner data build for both systems Integrated workflows that streamline processes for both the clinical and business sides Improved operational metrics that drive better, more strategic decisions Improved performance for cycles, such as requisition-to-payment, claim-to-payment, etc., resulting in both better cash flow and reduced costs Develop a true HIT ecosystem built to scale

17 Win-Win for Clinical and Operational Areas Clinical Improvements Quality of care Patient outcomes and satisfaction Operational Efficiencies Labor Supplies IT Systems

18 Potential Impacts of EHR and ERP Integration Patient information, data archives and supply chain information can be integrated and managed better Systems can be standardized with a common data dictionary to reduce duplication of effort and reduce errors Customer Relationship Management (CRM) results in cost savings, income generating opportunities and better patient service Significant efficiency is realized from Electronic Health Records (EHR) over manual charting. Information can be forwarded to other care givers more efficiently and storage is dramatically reduced. Care plan and treatment plans can be significantly improved with all systems working together in harmony. Considerably better financial controls because information is centralized, integrated and more accessible to everyone concerned.

19 Assessing Potential Impacts of EHR and ERP Integration Sample Questions to ask How much am I spending in this category, facility or department? What s my market share in this category? Where are there rogue purchases outside my contracted or preferred vendors? Who is purchasing non-preferred supplies? How do different supplies impact my quality metrics length of stay, complications, infections, mortality, etc.?

20 INTEGRATING WITH BEST PRACTICES

21 Foundations of a successful integration Organizational shift to view EHR/ERP systems and projects integration as required Strong Governance Team Business and Clinical project owners Focus cross-functional teams on solutions, not the systems Centers of Excellence for the EHR and ERP that include functional and technical experts Consider an experienced EHR/ERP integration coach

22 The challenge of vendor-specific expertise Vendors experts in implementing their technology Vendors typically not operations experts May not be aware of other technologies or its impact on operations Integrated, collaborative teams are the key to success

23 Where should we focus first? Materials Management Between ERP and EHR Documentation Optimization Inventory Depletion/Reconciliation Charge Generation Decision Support / Analytics / Business Intelligence

24 RSM US LLP One South Wacker Drive Chicago, Illinois +00 (1) This document contains general information, may be based on authorities that are subject to change, and is not a substitute for professional advice or services. This document does not constitute audit, tax, consulting, business, financial, investment, legal or other professional advice, and you should consult a qualified professional advisor before taking any action based on the information herein. RSM US LLP, its affiliates and related entities are not responsible for any loss resulting from or relating to reliance on this document by any person. RSM US LLP is a limited liability partnership and the U.S. member firm of RSM International, a global network of independent audit, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. RSM and the RSM logo are registered trademarks of RSM International Association. The power of being understood is a registered trademark of RSM US LLP RSM US LLP. All Rights Reserved.

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