Top 5 Healthcare ERP Systems: Key Features, & Steps to Choose One

 As healthcare organisations grow, having a strong healthcare ERP system is more crucial than ever. It enables you to manage various aspects of business operations, from patient care to financial management, and administrative tasks into one unified platform.

In this post, let’s explore the top 5 ERP software for the healthcare industry, must-have features, and actionable steps for selecting the right solution for your healthcare business.

What is Healthcare ERP Software?

Healthcare ERP software is designed to centralise and manage administrative, financial, and clinical operations in healthcare organisations. It integrates various processes under a single platform, from patient care to supply chain management. As a result, it enhances efficiency, improves care coordination, and ensures regulatory compliance. 

In 2023, the global healthcare ERP market was valued at approximately USD 7.42 billion and is projected to expand at a CAGR of 7.2% from 2024 to 2030. This growth reflects the increasing demand for integrated solutions that streamline operations and improve patient outcomes in the healthcare sector.

Common types of healthcare ERP solutions:

What Are the Key Features of a Healthcare ERP System?

Managing healthcare operations is complex, with challenges such as coordinating patient care, ensuring compliance, and managing finances. To tackle these challenges, healthcare ERP systems offer features that centralise patient data, optimise clinical workflows, and ensure compliant operations. Here are the top 6 key features of ERP solutions for your business.

Appointment scheduling & staff management

Inefficient scheduling often leads to long wait times and staff shortages, frustrating both patients and your organisation. ERP software gives you and your patients the ability to schedule appointments in advance and manage staff resources more effectively. This reduces patient wait times, minimises scheduling conflicts, and ensures that staff are optimally allocated.

Clinical operations management

Managing clinical workflows manually can be time-consuming and prone to errors, affecting patient experience and operational efficiency. With clinical management features, you can automate tasks such as patient flow, and treatment plans. By tracking patient care from admission to discharge, these systems ensure that healthcare protocols are followed, and improve patient care while making clinical operations run more smoothly.

Procurement & inventory control

In healthcare, running out of critical medical supplies or overstocking can disrupt care delivery and waste resources. Procurement and inventory control modules allow you to track inventory in real time, automate procurement processes and optimise stock levels. This prevents shortages and reduces waste, ensuring that essential medical supplies and equipment are always available when needed.

Financial oversight

Financial management features are important for healthcare organisations. It provides tools to handle billing, manage revenue, and create accurate financial reports. With clear financial oversight, you can focus more on patient care and less on administrative burdens.

Compliance & security

This healthcare ERP module is a must-have functionality to meet strict healthcare regulations like HIPAA or GDPR. It helps you ensure compliance with these regulations through secure data encryption, access controls, and audit trails. This not only protects patient data but also makes it easier for you to monitor and maintain compliance.

Data analysis & reporting

Without real-time insights, it’s hard for you to make informed decisions. A healthcare ERP offers robust data analytics and reporting tools, allowing you to track important metrics like patient outcomes and financial performance. These insights support better decision-making, helping to improve patient care and optimise operational efficiency.

Top 5 Proven ERP Solutions for Healthcare Professionals

1. Odoo

Odoo is a highly modular, open-source ERP platform with a wide range of applications tailored for various industries, including healthcare. It’s known for its flexibility, allowing you to customise and integrate only the necessary modules.

Pros:

• Highly customisable and scalable, making it suitable for small to medium healthcare organisations.
• Cost-effective due to its modular approach, with free and paid versions available.
• Large community support and regular updates.

Cons:

Requires technical expertise for setup and customisation, which may add to initial costs.

Best for: Clinics, small to medium-sized hospitals, and pharmaceutical companies looking for affordable, customisable ERP solutions.

2. Microsoft Dynamics 365

As a robust cloud-based ERP and CRM platform, Microsoft Dynamics 365 is highly regarded for its seamless integration across Microsoft’s ecosystem. For healthcare, it provides powerful tools for managing patient information, financials, and operations while maintaining strong data security and compliance features.

Pros:

• Comprehensive suite of features, including financial management, patient care coordination, and data analysis.
• Strong integration with other Microsoft products (Excel, Power BI, Teams).
• Scalable and flexible, suitable for both small and large healthcare organisations.

Cons:

• Licensing and customisation can be costly, especially for smaller healthcare facilities.
• Can be complex to implement, requiring expert guidance and training.

Best for: Hospitals, large healthcare networks, and organisations seeking strong data integration and enterprise-level solutions.

3. Infor

Infor’s CloudSuite for Healthcare is designed to improve operational efficiency and improve patient outcomes by providing healthcare professionals with real-time data and insights.

Pros:

• Deep healthcare-specific functionality, including clinical and operational management.
• Advanced supply chain and procurement tools that are vital for large healthcare organisations.

Cons:

• Higher cost of implementation and maintenance, more suited for larger healthcare organisations.
• Complexity in customisation and integration with other systems may require additional resources.

Best for: Large hospitals and healthcare providers with complex operational needs, requiring deep industry-specific features.

4. QAD ERP for Life Sciences & Medical Devices

This cloud-based ERP solution is specifically designed to meet the unique needs of companies in the life sciences sector, including pharmaceuticals, biotechnology, and medical device manufacturing. 

Pros:

• Strong compliance features for adhering to strict industry regulations like FDA, GMP, and ISO, make it ideal for healthcare companies.
• Tailored functionalities for managing clinical trials, product traceability, and quality assurance.
• Multi-language and multi-currency support, making it suitable for international operations.

Cons:

• Due to its highly specialised nature, the system can be complex to implement, requiring significant time and resources.
• May be expensive for smaller companies, especially when customisation and integration needs are high.

Best for: Organisations in highly regulated environments needing strong production and quality control, especially those with global operations.

5. Acumatica

Do you want to access real-time data across multiple devices? Acumatica can help you with that! As a cloud-based ERP solution, Acumatica excels at financial management, data security, and system integration.

Pros:

• Cloud-native, offering flexibility, scalability, and access from anywhere.
• Excellent financial management and reporting tools.
• Lowers total cost of ownership compared to on-premise systems.

Cons:

• Requires third-party applications or custom development for healthcare-specific features.
• Limited out-of-the-box healthcare functionality compared to specialised ERP systems.

Best for: Healthcare organisations seeking a cloud-first, cost-effective solution with a focus on financial management and scalability.

5 Steps to Select ERP Software for Healthcare Businesses

Step 1: Identify specific healthcare needs

Different types of healthcare providers - such as hospitals, clinics, pharmaceutical companies, and health insurance providers - have varying requirements. For example:

• Hospitals may need an ERP system that integrates patient management, bed allocation, and medical billing, while also streamlining inventory for medical supplies.
• Clinics often prioritise solutions that improve clinical workflows and centralise patient data through EHR (Electronic Health Records) integration.
• Pharmaceutical companies will require ERP software that supports supply chain management, regulatory compliance, and quality control.
• Health insurance providers need an ERP system focused on claims processing, policy management, and adherence to healthcare regulations.

Step 2: Evaluate ERP industry-specific features

Healthcare ERP systems are not one-size-fits-all, so evaluating industry-specific features is crucial. Look for an ERP solution that supports the following:

• Regulatory compliance & data security: Healthcare is highly regulated, so choose an ERP system that adheres to relevant laws and regulations like HIPAA (Health Insurance Portability and Accountability Act) or GDPR (General Data Protection Regulation). Plus, it must have robust encryption, multi-factor authentication, and user access controls. Verify that the ERP vendor offers regular security updates and adheres to the latest standards in data protection.
• Medical device integration: For hospitals and clinics, the ERP should be able to integrate with medical devices, allowing real-time data flow from medical equipment to the ERP system.

Step 3: Consider integration capabilities

Healthcare businesses often rely on multiple systems - such as laboratory systems, EHRs, patient portals, and billing systems - that need to work seamlessly together. When choosing an ERP, it’s essential to ensure that it can integrate smoothly with your existing systems, enabling:

• Data flow: Allows for real-time data exchange with EHRs, medical devices, or laboratory management software, ensuring accurate patient information across platforms.
• Reduced manual work: Automates data flow between systems, reducing manual entry and minimises the chances of errors.
• Future-proofing: As your organisation grows or regulations change, you may need to integrate additional systems. Ensure the ERP solution has the flexibility to support future integrations.

Step 4: Assess vendor capabilities

You should pay attention to these key aspects when evaluating vendors:

• Cloud or on-premise: Choose between cloud-based (scalable, lower costs, remote access) or on-premise (greater control, higher upfront cost) ERP systems.
• Support and training: Consider the level of customer support the vendor provides. Healthcare staff require proper training to maximise the ERP system’s benefits.
• Customer reviews: Research the vendor’s reputation by reviewing customer feedback, case studies, and testimonials from other healthcare providers to assess the vendor’s reputation.
• Upgrades and maintenance: Choose a vendor that provides regular software updates, security patches, and scalability options to meet the evolving needs of healthcare organisations.

Step 5: Work with experts

Before making a final decision, it’s essential to see the ERP system in action. Schedule demos and conduct proof of concept (PoC) tests to evaluate the system’s usability, features, and performance under real-life conditions. 

• User-friendliness: The ERP interface should be intuitive for healthcare professionals, allowing easy navigation through features like patient data management, billing, and inventory control.
• Customisability: During the PoC phase, assess whether the ERP can be tailored to meet your organisation’s specific requirements, such as custom workflows, reports, or integrations.

What’s next?

Choosing the right healthcare ERP is essential for improving operations and patient care while maintaining compliance. You should assess your specific requirements, prioritise key features, and partner with a reliable ERP implementation partner to ensure a smooth implementation for better outcomes.

ERP for Healthcare Industry - Frequently Asked Questions (FAQs)

1. What is the difference between ERP and EHR?

ERP is a software system that helps businesses manage back-end operations like finance, supply chain, human resources, and operations while EHR focuses on patient data, billing, medical records, and clinical workflows.

2. What is the best ERP for healthcare?

Here are the top 5 ERP solutions ideal for specific healthcare scenarios:

• Odoo: Best for small to mid-sized healthcare providers or clinics seeking a customisable, modular ERP system with flexibility.
• Microsoft Dynamics 365: Best for large hospitals or healthcare networks requiring AI-powered analytics.
• Infor: Best for healthcare organisations focused on operational efficiency and supply chain management.
• QAD Adaptive ERP for Life Sciences & Medical Device: Best for companies in heavily regulated industries needing strong production and quality management, especially with international operations.
• Acumatica: Best for cloud-based operations, especially telehealth providers looking for a flexible and scalable ERP solution.

3. How much does it cost to implement a healthcare ERP solution?

The cost of implementing a healthcare ERP solution varies widely based on the size of the healthcare organisation, the complexity of the system, and whether it’s cloud-based or on-premise.

It’s crucial to work with a trusted implementation expert to avoid costly errors and ensure the system is tailored to your specific needs. Experienced professionals can streamline the process, ensure compliance with healthcare regulations, and help maximise the ROI by offering support during setup and training, ultimately reducing downtime and operational disruptions.

Reference:

• Grand View Research. Healthcare ERP Market Size, Share & Trends Analysis Report By Function (Inventory & Material Management, Supply Chain & Logistics Management), By Deployment (On-premises, Cloud), By End-use, And Segment Forecasts, 2024 - 2030