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Comprehensive Guide on ERP in Healthcare Industry For 2024- 2025

Published: Sep 16, 2022  |   | 
ERP for healthcare

ERP in Healthcare industry can provide a centralized platform to the hospital system. When it comes to utilizing advancing technology for improving patient care services, an ERP for software always remains useful. Healthcare facilities can meet the patient’s needs and manage all the services while maintaining quality with the help of an ERP solution. In this article, we will discuss the key features and major benefits of ERP for the healthcare industry.

What Is Healthcare ERP?

As per the report of The Office of the National Coordinator for Health Information Technology, more than 95 percent of hospitals have adopted EHR (Electronic Health Record) systems. A healthcare ERP system can optimize back-office operations effectively for hospitals that have integrated EHR systems. Customized healthcare ERP software can also streamline essential processes of the healthcare organization while benefiting patients and physicians alike.

The healthcare ERP software is advanced system to collect data from various departments of hospitals and present it on a centralized platform. Unlike the traditional way of managing the data using different software, the healthcare ERP system facilitates health service providers to gather, store, manage, and analyze the data in a single place. It can accelerate the process of data sharing and provides users with actionable insights in real time.

Why Do Healthcare Organizations Need an Integrated ERP System?

The healthcare sector is full of opportunities and challenges. On one hand, this sector is thriving at a rapid pace and the recent pandemic acted as a catalyst in its growth, and, on the other hand, the healthcare industry faces many challenges including remote patient care. Here, dedicated ERP systems in the healthcare industry can lend a helping hand with effective features. This system can automate the broad range of daily operations in the hospital.

Healthcare organizations always look for reducing costs without compromising patient care services. An ERP for healthcare can assist health service providers to achieve this objective by increasing accuracy with improved workflow. It brings automation to various processes across all the departments so that hospitals can save big on labor costs and deliver excellent patient care services. What’s more, an ERP system can increase visibility and offer real-time data.

Healthcare institutions can make informed decisions with the help of actionable insights. For example, an ERP solution can track medical supply levels and ensure that organizations always have what patients need. Hospitals can get rid of shortages and other supply-related issues with the help of ERP systems for healthcare industry. As a result, it is possible to increase the patient’s satisfaction and build a reputation over the period.

ERP for Healthcare Industry - Benefits

Integrated healthcare ERP solutions are highly beneficial for the sector. As healthcare organizations need to deal with a massive amount of sensitive data daily, it is imperative for them to use robust and sophisticated solutions like an ERP system. ERP for healthcare is designed to manage workloads and assist hospitals to embrace trends in healthcare technology. Here are some of the major benefits of ERP in healthcare services.

Benefits of ERP in healthcare Industry

  Improves Patient Care

Clear and real-time communication between departments can improve patient care and safety while facilitating instant treatment. With a customized ERP system, Healthcare service providers can focus more on improving patient care because the customized ERP system can handle administrative tasks efficiently.

  Streamlines Processes

ERP software for healthcare is designed to provide users with fast yet accurate reporting of all the necessary data. Graphical visualizations and real-time insights assist hospital management to solve problems and streamline processes. Once the process is streamlined, healthcare organizations can save a lot of time and effort.

  Reduces Operational Costs

The ERP solution can assist hospital organizations to save big on operational expenses. It can help hospital staff get rid of issues related to workflow, resources, and productivity. Cloud ERP software can streamline various processes and reduce wastage. With automating processes, healthcare organizations can reduce overheads.

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  Removes Discrepancies

There is no possibility of managing departmental processes using different software or tools. Here, an integrated healthcare ERP solution can remain handy by consolidating data and removing all discrepancies across different departments. When the data flows seamlessly across different departments, the healthcare organization can increase efficiency with ease.

  Follows Standards

One of the biggest benefits of the ERP software solution is that companies can easily follow all the standards. Talking about the healthcare industry, it is one of the most heavily regulated industries and it is essential for hospitals to follow all the prevalent standards to ensure the security of the patient and organization’s confidential data.

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Key Features of ERP in Healthcare Industry

Apart from gaining insight into the patient’s health records in real-time and leveraging the advantage of business intelligence, healthcare service providers can get the following benefits from the ERP solution.

ERP Features for Healthcare Industry

  Supply Chain Management

Like other industries, the healthcare organization also has to manage the supply chain effectively. In other words, inventory and procurement play a vital role in hospital management. What’s more, healthcare institutions have to manage lab results, equipment, and pharmaceuticals. The ERP solution can assist you in managing all these aspects efficiently. It brings automation to several processes and enables hospitals to offer better patient care at reasonable costs.

  HIPAA Compliance

As per the standard, every healthcare organization has to remain HIPAA (Health Insurance Portability and Accountability Act) compliant. An ERP system can integrate the data from all points including EHR and secure the same while assisting you to follow HIPAA standards. It also helps healthcare providers avoid data breaches or cyberattacks.

  Automation & Flexibility

ERP software can automate some routine activities including payroll and ordering. As a result, the purchase, admin, and account teams can easily manage other necessary processes. Your staff can focus more on improving services and you can significantly reduce the chances of human errors. Also, when you select an adaptable ERP software for the healthcare sector, you can keep all the information accurate and up-to-date.

  Real-time Analytics

A reliable ERP system has data analytics that can give you insights into your organization’s performance and financial condition. You can measure the KPIs with real-time reporting of the hospital staff and make improvements in the processes. Graphs, charts, and other visual representations can facilitate the management to make insightful decisions instantly.

  Accounting & Mobility

Mostly an ERP system has inbuilt accounting modules including an integrated general ledger. These modules are useful for auditing, budgeting, and other purposes. The hospital management can catch financial mistakes in advance with the help of accounting modules. Mobility is another useful feature that facilitates the hospital staff to access the data anytime using their mobile devices.

  Finance Management

This feature is useful for collecting and analyzing financial data for effective decision-making and budgeting. An integrated ERP healthcare system can assist managers of different departments to get insights quickly and create the budget accurately. The organization-wide data is also useful for allocating funds and managing the payment cycles effectively in the healthcare sector.

  Inventory Management

This feature is designed to track inventory levels and maintain the stock of essential hospital supplies. You can get the benefits from increased visibility and reduced wasted resources with proper inventory management. It further enables healthcare organizations to improve patient care services and reduce additional costs.

  EHR (Electronic Health Records)

This is one of the most important features. An ERP system can be integrated with EHR to give better control over diagnosis and treatment. You can also predict the patient and stakeholders’ needs effectively with EHR integration.

Which is the Best ERP?

These days, as technology evolves rapidly, various ERP solutions are available in the market. Some of these solutions are rich in features and capable of driving growth for industry sectors. Out of all these ERP solutions, SAP ERP solution is the best for your healthcare institution. Let’s understand how it has an upper hand over other available options.

SAP stands for Systems, Applications & Products in data processing. A German company with the same name has built ERP solutions for SMEs across all the core industry sectors. For example, SAP healthcare solutions can effectively meet the requirements of a thriving healthcare sector. Here are the top reasons that make SAP ERP better than other available ERP software.

  More Scalability

SAP Business One has a three-tier client-server architecture that gives the ERP a lot of space and scope. As a modular and customizable ERP system, SAP healthcare ERP can easily address increasing requirements over the period. You can add new features and upgrade the existing system with ease using the SAP ERP solution.


Usually, ERP systems are highly complex and massive. But, most importantly, they should be user-friendly. SAP ERP solution has remained impressive in this aspect. Though it has complex features, it remains simple and user-friendly for even non-technical users. The SAP team keeps on researching and eliminating unnecessary functions to shorten the learning curve.


SAP ERP system can address diverse and complex requirements of almost every industry sector, and the healthcare sector is no exception! Very few ERP systems available in the market are capable of crossing the industry limits and SAP ERP software is one of them. With a wide range of customizable features, users can easily manage daily processes and automate certain tasks.

  Shorter Implementation Time

As compared to other ERP healthcare solutions, SAP has straightforward implementation process. It boasts its out-of-the-box functionality and shorter implementation time. What’s more, SAP ERP software has the support of cloud technology that makes the software more flexible, scalable, and easier to use.

  Higher ROI

This is one of the biggest factors to consider while selecting the ERP solution for your healthcare organization. Though SAP ERP is the second most expensive ERP system after Oracle, it can offer the fastest payback in the industry irrespective of sectors. Higher and quicker returns than other existing ERP systems is SAP ERP software’s characteristic. Here are the key factors of SAP ERP for the healthcare industry.

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Major Factors of SAP for Healthcare Industry

The use of SAP for Healthcare Industry is increasing steadily across the world. It can digitize every part of the value chain so that you can give excellent services to patients. SAP offers robust support for Healthcare Industry to improve the patient's life quality. Here are three major factors influence the SAP for healthcare industry and contribute to transforming your organization to a digital platform:

Factors of SAP for Healthcare Industry

  Value-Driven Services

SAP ERP solutions for healthcare industry can assist you to provide your patients with value-driven services thereby creating an enhanced patient experience.

  Digital Transformation

Usage of advancements in Artificial Intelligence and Machine Learning will enable your staff to transform into a digital platform with SAP S/4HANA.

  Trust and Security

Your healthcare organization can enhance trust and data security with the help of a customized SAP solution for the healthcare industry.

How Does a Healthcare Organization Implement ERP?

Implementing ERP in the existing system is a complex process. It brings redistribution of roles within an organization, alteration of job responsibilities, and other changes in core processes. As per the ERP report 2023 by Panorama Consulting Group, as many as 81 percent of organizations favored consultancy services for implementing ERP medical software.

Hospital management can rely on the following process to implement ERP medical software into their existing system:

  Get an Approval

Firstly, it is necessary to gather all documentation and requirements for the software. Key information including problem definitions, software goals, scope, risk, benefits, and of course, implementation estimations are gathered. Once the document is formally approved by the top management, the plan gets ready.

  Build a Plan

Once approval is received, it's time to build a detailed roadmap or a plan for ERP implementation. You can add contract details of software vendors, list of team members, challenges, and the project's deadline along with resource allocation.

  Configure a Software

It is the most complex and critical stage of healthcare ERP implementation. ERP software development process is aimed at defining current business process gaps and setting up new parameters for the improved workflow. Additionally, in this phase, developers can handle possible integration issues.

Also Read: Top ERP Implementation Partner Selection Criteria

Why Silver Touch for the Right ERP Solution Provider

Silver Touch assist our corporate clientele with feature-rich SAP ERP solution. Our add-on development services cover all the major aspects of diverse industry sectors globally. As a reputed and experienced SAP partner, we offer a range of solutions including SAP custom solutions such as,

  • SAP Cloud Solutions
  • SAP Mobility Solutions
  • SAP HANA Solution
  • SAP Implementing & Migration
  • SAP Custom Development
  • SAP Licensing
  • SAP Analytics & Reporting

Whether you need consultancy or support services for implementing SAP solutions, you can always count upon us! Simply drop us a line at sap@silvertouch.com to know more about our services or avail free consultation.

Conclusion: ERP for Healthcare Solution

The right ERP solution can benefit your healthcare organization in multiple ways. You can provide seamless patient care services in a cost-effective way and offer a rich experience to your staff using the ERP solution. You can get the benefits of supply chain management and HIPAA compliance along with high scalability and flexibility. An ERP system can reduce operational costs significantly and assist hospitals to remove discrepancies. In a nutshell, Its features and functionality are capable of taking your healthcare institution to the next level.

Talk with our SAP ERP Consultant and Transform your Business to Achieve Business Goals

FAQs about ERP for Healthcare Industry

Why do we need ERP in healthcare?

A healthcare ERP system can capture, update, share, and store the patient's information on a single database. Healthcare organizations can get many benefits like high scalability and improved supply chain management.

Why is an ERP important for healthcare?

ERP healthcare software has many user-friendly features including appointments, finance management, supply chain management, and compliance management. It assists healthcare service providers to offer excellent patient care services and rich experience to the hospital staff.

How is SAP used in healthcare?

SAP solutions connect processes in the healthcare sector. SAP makes it possible for healthcare service providers to access the patient's data on premise, in the cloud, and also through mobile devices.

Is SAP used in healthcare?

Yes, SAP is used in the healthcare sector as it can give a seamless and feature-rich ERP healthcare solution. Hospital management can make informed decisions in the real-time through actionable insights provided by SAP ERP solution.

How is ERP used in healthcare?

The ERP system can be integrated into the healthcare system for collecting and analyzing the patient’s data, EHRs, and other healthcare service-related information. ERP can assist multi-speciality hospitals and healthcare organizations to manage various processes across different departments effectively.

More Resources About SAP ERP