It’s a tough time to be a finance leader in an American healthcare organization.
Recent investments in technology around ICD 10 conversions, cybersecurity, population health, and analytics have left little to no money for upgrading finance systems. In 2015, less than 29 percent of all U.S. hospitals implemented finance or supply chain software, according to a recent Black Book survey.
But there are indications that the situation is about to change. With more healthcare insurers reimbursing for value-based care rather than fee-for-service, providers face increasing demands to demonstrate value to the institutions paying the bill—and healthcare payers face similar expectations from members and stakeholders.
Proving value is tough to do if your financial systems aren’t up to the job.
This recognition is driving higher levels of interest in enterprise resource planning (ERP) software.
“In a payment environment that reimburses for value, it has become more critical to understand exactly how much it costs to deliver patient care,” said Doug Brown, Managing Partner of Black Book, in a press release announcing the research. “Clumsy costing based on uncoordinated data will become perilous for hospitals at risk.
“Patients cannot receive high quality care without proper cohesion of supply chain, human resources, finance and operational systems with clinical data as it all comes down to outcomes,” Brown continued.
According to the Black Book survey, cloud ERP solutions produced the highest client experience scores—including speed in implementations and scalable total costs.
“92 percent of survey respondents recognize that the ERP of healthcare future is mobile and it’s in the cloud with secure networking and analytics built in,” said Brown. “The idea is that you have general ledger, accounts payable, budgeting, forecasting and cash management all accessible anywhere, whether in the operating room, purchasing, or in administration.”
The survey also invited respondents to rate healthcare ERP vendors for 2017. Oracle ERP Cloud ranked first in client experience and product satisfaction scoring.
A recent spate of customer announcements lends credence to these results.
Improved financial efficiency was the primary driver for Family Health Network (FHN) to select Oracle ERP Cloud. A not-for-profit provider sponsored health plan in the Chicago area, FHN is one of the largest managed care plans in the region under the Medicaid Family Health Plan.
In evaluating a new financial system, FHN decided a move to the cloud was the best approach in order to best streamline operations and upgrades.
“In insurance, clear finance reporting is critical in order to process claims as quickly as possible,” said Nirav Shah, vice president of finance at Family Health Network. “Oracle ERP Cloud is a valuable tool for our company, streamlining our financial operations, while also maximizing business performance and growth.”
Health Care Service Corporation (HCSC) recognized that cloud technology could help them to remain agile and quickly react to future changes. The largest customer-owned health insurer in the United States, HCSC selected Oracle ERP Cloud to help transform its financial systems and support its 22,000 employees serving more than 15 million members across five states.
“We evaluated vendors based on several drivers, including strategic fit, capability, maturity, vendor commitment and support, employee feedback, and implementation considerations,” said James Kadela, SVP controller at HCSC. “Oracle ERP Cloud was the natural choice based on the nature of HCSC's financial systems. In addition to its current capabilities, Oracle is heavily investing in research and development and we feel confident that Oracle ERP Cloud will evolve with us to support our long-term business strategy.”
In line with that investment, Oracle recently received a Health Insurance Portability and Accountability Act (HIPAA) attestation for its suite of cloud applications—including Oracle ERP Cloud, Oracle Human Capital Management (HCM) Cloud, and Customer Relationship Manager (CRM) Cloud—demonstrating that its cloud solutions meet the requirements established by the U.S. Department of Health and Human Services for organizations working in the healthcare industry.
HIPAA attestations affirm the proper saving, accessing and sharing of individual medical and personal information, as well as compliance with national security standards to protect health data created, received, maintained or transmitted electronically.
So you can feel confident that, in addition to improved financial management, Oracle ERP Cloud meets the standards set by the healthcare industry for security and patient record protection.
If you’re one of the majority of healthcare providers or payers whose ERP system is aging or obsolete, now is a great time to look at modern finance software in the cloud.