Jul 10, 2017
NYC Health + Hospitals has launched an upgraded software system to better manage business functions and support the digital transformation of the largest municipal health care system in the country. The fully integrated Enterprise Resource Planning (ERP) system replaces paper and manual processes, eliminates reliance on obsolete technology, and will drive improvements in operational performance. The new system will standardize inventory management, payroll, time keeping, budget, and other business functions across the health system’s vast network of acute care hospitals, nursing facilities, and ambulatory care sites.
“We are retiring a slew of business systems that don’t communicate with each other and no longer support our strategic goals,” said Interim President and CEO Stan Brezenoff. “This is a crucial part of our digital transformation to help eliminate redundancies, adopt sound processes that improve efficiencies, and strengthen the long-term financial viability of New York City’s essential public health care system.”
“Our newly launched system will change many aspects of our work—for the better. For example, about 90% of our purchase orders are manually generated. As the system is implemented at each site, we will be ordering goods and services online, with the ability to assess what is in stock and what is truly needed,” said Chief Information Officer Sal Guido. “We will also be taking a big step forward in how we process and report financial data. The system will now help us generate performance reports—on patient revenue, for example—for the entire system instead of cobbling together reports from separate systems. These changes will allow us to continue to provide the best service to our patients while improving our business processes.”
The Enterprise Resource Planning system is an integrated suite of business applications that share a common process and data model. Immediate benefits include:
Produced by PeopleSoft, the Enterprise Resource Planning system is also used by other health care systems across the country, including NYU, Northwell Health and Kaiser Permanente.
Implementation Schedule, Costs and Return on Investment
The integrated Enterprise Resource Planning platform was launched July 3 for centralized health system functions and for a number of hospitals in the system. The full implementation of facility-level functions will continue in waves, and the comprehensive suite of business applications will be completed in the third quarter of 2020.
NYC Health + Hospitals will invest $72 million through Fiscal Year 2020 to fully implement the new ERP system at its 11 hospitals, five long-term care facilities, and more than 70 community-based health centers. The implementation costs include the PeopleSoft ERP product and related hardware, software, licensing, maintenance fees, and workforce training across every patient care site.
NYC Health + Hospitals expects to save $65 million over the next five years by maximizing operational efficiencies and avoiding the costs associated with running the four separate legacy systems that will be retired, which currently support more than a dozen business functions. The health system also expects to achieve additional savings worth tens of millions annually after FY 2021 and well into the future.
As previously announced, NYC Health + Hospitals is also implementing new revenue cycle technology that will integrate seamlessly with the patient electronic medical record system that it began to adopt last year. Both products of Epic, the revenue cycle and electronic medical record systems are being developed to coordinate smoothly with the new ERP system.