Hospitals, clinics, and other healthcare facilities are complex systems because their successful work requires high qualifications in clinical practice and administrative tasks. Moreover, the management task is even more complicated than in most industrial enterprises, since the primary interaction occurs between people, which requires constant monitoring and reporting. For this reason, many hospitals increasingly resort to the use of information and computer systems to facilitate the work of medical and managerial personnel who encounter large amounts of information on a daily basis. However, these systems have both their advantages and disadvantages, which impede the rapid and large-scale implementation of applications, and can affect the quality of healthcare services. Consequently, this paper will examine administrative and financial system applications to determine the potential for their implementation and use in healthcare.
Computer systems and applications in healthcare have several advantages over the traditional paper accounting system. These applications combine many functions and also accelerate the process of searching, classifying, and processing information, which makes the staff’s work process more efficient. For example, the OnBase application offers financial and personnel management functions, such as the creation and dissemination of policies and procedures, financial close and reporting, medical personnel management, and others (“Administrative healthcare solutions,” 2018). This approach to the systematization and dissemination of information is more convenient, since all the data is in one system, and the search is carried out automatically. At the same time, in addition to financial and administrative functions, HealthCare ERP software offers services aimed at simplifying the work of medical personnel (HIS (Hospital Information System), 2018). For example, therapists can register or find the patient’s medical history, as well as make or cancel an appointment by using the application. The user-friendly interface and functions of such an application allow a doctor or nurse to save time searching for a medical record in a paper database. In addition, since all the data is already in the system, financial, performance, or health reports can also be generated automatically. Consequently, the use of administrative and financial system applications has many advantages for healthcare institutions.
Moreover, one of the most useful application functions is data collection and analytics. Paper systems also have datasets that can be used to analyze and evaluate changes in a particular hospital or healthcare area. However, for their processing, the painstaking work of many people is required, even if these data are entered into electronic statistic tools. At the same time, applications can generate ready-made reports, since data is accumulated in them over a certain period, which facilitates reporting and research activities. For example, HealthCare ERP software has the function of pharmacy and laboratory management (HIS, 2018). Therefore, the scientist can track the main trends, and changes analyze the state of health of the population. Another type of analytics is the preparation of financial reports that help managers see the highest costs or problems in the company and adjust necessary areas. Consequently, the analytics collected by administrative and financial system applications have significant benefits for both the clinical and managerial activities of hospitals.
However, a drawback and barrier to the use of such a system is its cost and the duration of the process of its application. Adwan et al. (2013) distinguish six stages for the adoption and implementation of the system, most of which are preparatory; for example, the selection and customization of software, and its testing. These preparatory stages also require significant funds, and although scientists note a reduction in cost, IT systems are still expensive. At the same time, the position on whether application use reduces hospital costs remains controversial. For example, Adwan et al. (2013), in their study of THERP, noted a 13% reduction in hospital costs for each admission. On the contrary, Arndt (2018) says that costs do not decrease due to varying contracts between hospitals, health plans, and payers. However, scientists used different approaches to assessment, which explains the difference in their results. In any case, the cost of implementing applications or IT systems is an average of $162,000 in the first year and $ 85,000 a year in maintenance costs in 2016, which is a pretty significant amount of money (Palabindala et al., 2016). For this reason, hospitals are forced to evaluate their financial and administrative capabilities before introducing new systems.
In addition, despite all the advantages of IT systems in healthcare, applications also have a number of challenges and barriers to their use, the main of which are the selection and customization of IT programs, data protection, and staff training. The first barrier is related to the fact that different clinics and hospitals need different applications and systems, depending on their specialization and size. For this reason, inexperienced in this area manager can choose a system that does not satisfy the needs of the hospital, or vice versa has unnecessary functions. Consequently, the effectiveness of application implementation is significantly reduced. However, detailed planning and analyzing hospital structure and features eliminate the possibility of the wrong choice and save the facility’s funds. The second challenge justified by the fact that all patient data is in the same system, and their use for analytics can threaten confidentiality (Ginsburg et al., 2019). In addition, there is always a threat of data theft.
The third problem arises at the stage of application implementation, since staff needs to switch from their usual work system to a new one, most often with a complex interface, which scares and confuses employees. Consequently, applications can also be of little benefit due to the inability or unwillingness of staff to use all of its functions. However, this barrier is quite easily overcome with the help of training; moreover, they can be in an online format or video guides to save time and provide constant support to staff. Nevertheless, the main trend of IT systems adoption in healthcare remains at both local and federal levels as government investments in 2018 already reached $ 30 billion (Arndt, 2018). Therefore, despite the existing barriers, healthcare providers put the advantages of administrative and financial system applications above their lacks and encourage their use.
In conclusion, administrative and financial system applications have advantages and disadvantages for healthcare; however, their benefits prevail over the challenges. Although the issue of high cost and cost reduction is controversial, applications make the work of clinical and administrative staff easier. At the same time, the main challenges related to data confidentiality, the choice of applications or IT systems, as well as staff training, are overcome with the help of legal and managerial measures. Consequently, IT systems in healthcare require improvement and modernization; however, they have significant potential for improving hospital performance and providing health services.
References
Administrative healthcare solutions. (2018).
Adwan, O., Sleit, A., Qatawneh, M., Huneiti, A., & Khalil, T. (2013). Implementing a total healthcare enterprise resource planning system. International Journal on Information. 16(6(b)), 3997–4004.
Arndt, R. (2018). EHR do not lower administrative billing costs, study finds. Modern Healthcare.
Ginsburg, P., Loera-Brust, A. de, Brandt, C., & Durak, A. (2019). The opportunities and challenges of data analytics in health care. Brookings.
HIS (Hospital Information System). (2018). How healthcare ERP software support in hospital excellence. Solution Dots Systems.
Palabindala, V., Pamarthy, A., & Jonnalagadda, N. R. (2016). Adoption of electronic health records and barriers. Journal of Community Hospital Internal Medicine Perspectives, 6(5).