What’s the role of ERP software in a hospital?

Digitization of data is indeed one of the remarkable inventions of man. No doubt in that.

At a point of time, we realized that the potential of data is godly and is the door way to the future.

So what happened next was obviously the wide spread acceptance of digitization.

As data increased the need for managing as well as interpreting them also increased.

The exact reason why ERP system was invented.

Enterprise resource planning (ERP) system/software are a boon in this new age. Be it any industry the power of an ERP system is endless.

The most surprising change that happened lately is that Health sector once reluctant to install such technology is changing their attitude owing to one reason.


The number of hospitals is increasing exponentially nowadays in accordance with patients. It has reached a stage where data management has become a necessity.

After realizing the need and potential of Enterprise resource planning (ERP) hospitals are now embracing the cutting edge technology.

Let’s have a sneak peak at the idea behind ERP system and how it’s being put to use in hospitals.

What’s an Enterprise resource planning (ERP) system?

The data from the different section of an organization is integrated and stored in a database. The system gives an updated view of the core business process using this database. In short ERP system conduct information flow and processing between various sections of an organization.

The end result is that efficiency of work flow will increase to a great extent.

Types of ERP

Industry Specific ERP: They are mostly complex and requires heavy duty hardware to run. Mostly meant for large companies or even factories for data automation.

Cloud ERP: Preferred for small companies. Usually, a provider will rent out their Central ERP system via internet and companies can purchase the service in accordance with their need.

The most important feature of this system is its scalability. Rental charge will depend on the specification of services availed.

Small Business ERP: ERP systems can control supply chain or even accounting tasks for a company. However, small companies do not need that. For them, customized ERP systems are available where they can choose what all the ERP system will have the authority to control.

What’s the purpose of ERP in health care/hospital?

First of all, the most profound impact of ERP will be in the administrative section. It helps in streamlining the entire procedure in an office and there by increasing the efficiency.

Efficiency is directly proportional to the cost of any industry. The software system helps in cutting down the expenditure to a great deal by increasing the efficiency.

Customer satisfaction is the most important aspect of any business. In the case of hospitals, patients have options if they are not satisfied. What an ERP system does is that. It will ease up the whole process so that Patients will get an improved and detailed care than ever before. 

ERP helps a hospital in achieving global standards in terms of treatment, decision making as well as diagnosis.

Functions of ERP system in health care

  • Complete management and interpretation of patient database

  • Schedules appointment of patients, doctors, test etc.

  • Visibility on accounting system of hospitals

  • Manages the entire billing system

  • Inventory tracking as well as management

  • Integrates with multiple programs

  • Synchronized test report system

  • Creates virtual front desk

  • A special portal for patients so that confusing paper based system can be avoided

What can be expected after the installation of ERP software?

  • Better care for patients: Lesser waiting time in diagnosis, pharmacy purchase, report construction, tests, bills as well as patient information registration. Thus, satisfied patients.

  • Streamlined process: Integration is the beauty of ERP software. Since every procedure is automated all the proceedings will be streamlined and organized.

  • Better Communication: Communication between doctors, staff as well as patients will happen quickly and effectively.

  • Increased standards: ERP system ensures that certain standards in each and every department have been met and there by the increasing the quality of the service.

  • Better Supply chain: Inventory of ERP software has impeccable management features. Purchase, expiry date, stock list etc can be thoroughly checked.

  • Centralized Data: ERP system does not just stores the data. It has the ability to process the data in accordance with various input parameters.

  • Considerable reduction in operation cost: Confusions and less efficiency are two major causes for the unnecessary cost in a hospital. These two will be eliminated once and for all if an ERP system is installed

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