Over the next 5-10 years healthcare provider institutions will shift investment dollars to modernize to cloud-based ERP systems, such as industry leaders Workday and Infor. Converting to a cloud-based ERP is a large commitment that will require an influx of consulting and project management services and requires rebuilding system data into a new data structure.
Enormous benefits of a cloud-based ERP include world class security, modern user interfaces and reporting, and freeing up IT staff from locally hosted ERP platforms. This conversion is also an important opportunity to restructure, reset, and greatly enhance key data sets such as product information and code structures that enable detailed cost capture.
With the right data strategy and execution during this conversion, providers can gain new transparency at a procedure and patient level to drive their profitability and competitive advantage. The right setup can future proof the organization to be ready as new regulations, business requirements, and technology evolve. This is also an opportunity to consolidate hospitals into a centralized IDN greater efficiency of shared services, business intelligence, and operational improvement. Bad execution of data conversion can leave an organization reverting to old processes, inefficiencies, and lack of business insight within the new system and can include additional project costs and delays.
The Data Conversion Challenge
Converting hospitals or especially groups of disparate hospitals into a cloud-based ERP is a large commitment of money, resources, and time. While an entire industry of consulting firms are ready to manage a project of this size, some of the key tasks and decisions on the project involve busy stakeholders of the organization that can’t ignore their day jobs.
Overhauling and assigning data elements such as general ledger accounts and sub-accounts or data to feed EHR Product menus can bog down in cross functional committees and result project delays and concessions that cannot be undone easily.
Consolidating, standardizing, and enhancing medical product data (especially with multiple hospitals) is also an area of high risk for errors and delays without the proper tools and reference data resources.
ERP Master Data Planning
Within the complex process to award an ERP software provider and to award an ERP implementation partner, developing data conversion requirements and budgeting for the project resources and data content is often buried and subject to time and material risks.
Scope and investment for an ERP product data conversion should include the following areas of opportunity:
- Vendor Master cleanup and consolidation
- Material Management Supplier Master cleanup and consolidation
- Supply Item Master cleanup, consolidation, contract connectivity
- EHR Implant/Product Master Cleanup and menu enhancement
- General Ledger Sub-account expense structure and product level assignments
- Revenue Code assignments
These areas of product data are very related and should be coordinated together to ensure system interoperability integration, and data completeness that maximizes the results of the new ERP system and reduces the ongoing labor costs of maintaining the system.
Enhancing ROI - Master Data Automation
IMPENSA® specializes in healthcare data management and provides the master data required for successful ERP implementations and conversions. IMPENSA® data management services are powered by CostCloud®, our healthcare subscription catalog and matching technology with over 6+ million medical and non-medical products enriched with our proprietary i.FLEX™ categorization, and other key elements that improves interoperability of data throughout the Cost Cycle process from Supply Chain to Procedure to Billing and Cost Accounting.
Contact Impensa Advisors for a free data assessment and to learn more about how our hospital data management services can support your ERP conversion and provide standardized and categorized transparency into your Supply Chain spend and your Cost Cycle process.
