Mysap Healthcare Focus Areass

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mySAP Healthcare
Solution Focus Areas
Sapphire Lisbon 2002

Leo Schneider

Dr. Harald Pitz

Vice President
mySAP Healthcare
SAP AG

Product Manager
mySAP Healthcare
SAP AG

SAP in the Healthcare Industry

„ Healthcare is a major industry of SAP´s Public Services

practice, which is operating globally. SAP´s Public Services
business contributes to SAP´s overall revenue with
approximately 11%
„ SAP has approx. 800 Healthcare installations worldwide. The
mySAP Healthcare solution focuses Healthcare provider
organizations
„ mySAP Healthcare offers an end-to-end solution from ERP
(back office) to e-Health including solutions for patient
management and accounting as well as seamlessly
integrated clinical solutions provided by partners.
„ Customers live since 1994


SAP AG 2002, mySAP Healthcare Solution Focus Areas2

1

mySAP Healthcare: Customers Worldwide
Finland
Denmark
Ireland U.K Belgium
Netherlands
Luxemburg Germany
Switzerland Austria
Spain Italy Greece
Portugal
Turkey
Israel

Canada*
USA

Mexico
India
Colombia

Japan
Malaysia

Brazil

Singapore
Indonesia*

Chile

South
Africa

Argentina

Australia

Languages: English, French, German, Spanish, Dutch, and others
SAP Patient Management currently not available for several countries including
Australia, Brazil, Belgium, Chile, Denmark, Japan, UK; SAP Patient Management
can be available as a localized version or as project solutions


New
Zealand

SAP AG 2002, mySAP Healthcare Solution Focus Areas3

mySAP Healthcare: Key Strategic Messages

1

Integration

of clinical and patient-oriented processes
with administrative and financial processes

Empowerment

2

through healthcare-specific roles, workplaces
and enterprise portals

Collaboration

3

work together seamlessly across organization
boundaries as if they were one entity



SAP AG 2002, mySAP Healthcare Solution Focus Areas4

2

What Drives Our Customers ...

3

2

Increased Patient
Expectations

Regulation / Legal Requirements

Healthcare Provider
Organization

1

4

Limited Budgets

5

Public Initiatives

Competition, Mergers & Acquisitions


SAP AG 2002, mySAP Healthcare Solution Focus Areas5

What Drives Our Customers ...

Business Needs,
Activities of Our
Customers and SAP’s
Solution Offering



SAP AG 2002, mySAP Healthcare Solution Focus Areas6

3

Business Need: Manage Limited Budgets
Limited Budgets

„
„
„

Æ Cost Pressure e.g.

Examples of how mySAP
Healthcare could assist:

Budget caps, budget cuts
Limited revenue opportunities

mySAP Business
Intelligence assists you in
gaining insight into which
clinical processes drive
your costs.

Losses, decreasing profits

Possible Activities
„ Increase cost and revenue
transparency
„ Reduce process costs
„ Standardize clinical processes
„ Improve treatment efficiency
„ Outsource services



mySAP SRM helps you to
cut your inventories, to
reduce your procurement
costs and to integrate your
internal clinical supply
chain.
SAP Patient Management
scheduling enables you to
plan and manage your
patient visits effectively.

SAP AG 2002, mySAP Healthcare Solution Focus Areas7

Service and Revenue Controlling with mySAP BI

99 Ad
AdHoc
Hocanalysis
analysis
99 Drilldown
Drilldowndown
down/ /across
across
99 Filter
Filter
99 Authorization
Authorizationconcept
concept
99 OLAP
OLAPfunctionality
functionality/ /navigation
navigation
99 Exceptions
Exceptionsand
andconditions
conditions
99 ......



SAP AG 2002, mySAP Healthcare Solution Focus Areas8

4

Occupancy Monitoring with mySAP BI



SAP AG 2002, mySAP Healthcare Solution Focus Areas9

mySAP Business Intelligence for Healthcare

University Hospital Kiel about
mySAP BI for Healthcare:

“SAP BW is open for non-SAP data from clinical
systems and supports different types of Cost
Object Controlling so that cost object data can be
combined at case level.”
Dr. Christiane Hinck-Kneip, Coding Director

“SAP BW more than convinced us just in the
pilot phase!”
Manfred Baxmann, CFO



SAP AG 2002, mySAP Healthcare Solution Focus Areas10

5

Key Challenges for Procurement
Creation and processing of purchase order (PO) costs
between £30 - £250!

„ Procurement of indirect goods and services

accounts for 30-60% of the total spend of an
organisation
„ Overhead costs for procuring a £5 item are the
same as for a £4,000 item
„ There are 39 steps (plus or minus ten) needed
to process an average PO in the traditional
way

Source: Purchasing Magazine


SAP AG 2002, mySAP Healthcare Solution Focus Areas11

mySAP Supply Chain Management for Healthcare
Montefiore Medical Center about
mySAP SCM for Healthcare:
“The information system and related process improvement
saved from $4 million to $6 million in supply management
costs in 1997, the first year of operation.”
Charles Agins, Vice President of Finance

“The supply management and financial reporting capabilities
of the enterprise resource planning system are crucial to
Montefiore's efforts to be competitive on quality, pricing and
service in the New York healthcare market.”
Elaine Brennan, Vice President of Operations

“The person ordering the supplies can see the items
confirmed, track their progress, know when they're received
and verify that an invoice was presented and paid.”
Joseph DiChiara, Manager of Contracts and Vendor Relations


SAP AG 2002, mySAP Healthcare Solution Focus Areas12

6

Business Need: Manage Regulation / Legal Requirements
Regulation / Legal Requirements

„
„
„
„

Processes such as accounting depend on
legal requirements (e.g. DRG-based)
Public healthcare reporting
HIPAA (US)
Frequent changes

Possible Activities
„ Deploy flexible, powerful and globally
available solution to be flexible and
able to respond to changes quickly
„ Establish flexible reporting meeting
internal and external, current and
future needs
„ Use IT assisting in change
management (instead of a barrier)


Examples of how mySAP
Healthcare could assist:
mySAP Business
Intelligence has the
flexibility to meet your
reporting needs.
SAP Patient Management
billing provides a flexible
rule-based framework
which enables the
deployment of various
billing systems.
mySAP Healthcare is
implemented in more than
30 countries worldwide
and meets and combines
the needs of various
healthcare systems.

SAP AG 2002, mySAP Healthcare Solution Focus Areas13

Example: Workplace for DRG-Based Documentation



SAP AG 2002, mySAP Healthcare Solution Focus Areas14

7

SAP Patient Management

Hospital Britanico de Buenos Aires
about SAP Patient Management:

“SAP Patient Management - a solid, dependable and flexible
product. The implementation project was finished on time and
within budget, the go-live was smooth and the users are
satisfied with the system functionality.”

Osvaldo Mauro, Director of the Informatics Project



SAP AG 2002, mySAP Healthcare Solution Focus Areas15

SAP BW – Base for mySAP Business Intelligence
SEM
- Planning and Simulation
- Balanced Scorecard

mySAP Enterprise Portals
e.g. for Hospital Chief Executive Officer
Analytical Applications

Benchmarking

BW Reporting

SAP BW

mySAP
Healthcare

P
SA


P
SA

SAP AG 2002, mySAP Healthcare Solution Focus Areas16

8

P
SA

mySAP Business Intelligence for Healthcare
Schön Clinics Group about
mySAP BI for Healthcare:

“What impressed us most of all were the simple, flexible data
extraction options and the high degree of integration with
mySAP Healthcare.
In particular, users are pleased with the option that enables
them to generate creative, ad hoc evaluations.”

Manfred Volmer, Business Manager Schoen Clinics



SAP AG 2002, mySAP Healthcare Solution Focus Areas17

Business Need: Manage Increased Patient Expectations
Increased Patient Expectations

„
„
„
„

Ageing population
Increased demand for information
Improve patient relations & satisfaction
Consumerism

Possible Activities
„ Establish various information
channels, e.g. phone, fax and Web
„ Manage waiting lists effectively
„ Reduce waiting time
„ Extended ways of consumer focus
and patient interaction
„ Prepare for (published) hospital
benchmarks



SAP AG 2002, mySAP Healthcare Solution Focus Areas18

9

Examples of how mySAP
Healthcare could assist:
mySAP Enterprise Portals
provide role-based
information & patient
services via the web.
mySAP CRM Customer
Interaction Center helps
you to manage your
patient relations using
various channels.
SAP Patient Management
helps you to manage
waiting lists effectively
and reduces waiting time
for treatments.

mySAP CRM for Healthcare
Turning customer orientation into a powerful competitive advantage for
your healthcare organization

„
„
„
„
„

Patients
External physicians
Clinics
Citizens
...

ƒ Interact with Patients

and GPs through the CIC
ƒ Campaigns for Treatment
Follow-Up
ƒ Home Care Services
ƒ Analyze Patient Segments



SAP AG 2002, mySAP Healthcare Solution Focus Areas19

mySAP CRM CIC – Provide Central Source of Information to Your
Patients



SAP AG 2002, mySAP Healthcare Solution Focus Areas20

10

Example: Waiting List Processing Including Planning for Surgery
and Admission
Display of
Waiting List

Planning Tool for
Surgery and
Admission



SAP AG 2002, mySAP Healthcare Solution Focus Areas21

Example: Scheduling an Outpatient Follow-Up Visit



SAP AG 2002, mySAP Healthcare Solution Focus Areas22

11

mySAP Healthcare
Hospital of the “Barmherzigen
Schwestern” Linz (Austria) about
mySAP Healthcare:

“Besides optimized patient orientation, time and
cost savings are the result of the project’s wide
scope.”



SAP AG 2002, mySAP Healthcare Solution Focus Areas23

Business Need: Follow Public Initiatives
Public or Political Initiatives such as

„
„
„
„

IOM Study: Reduce Treatment Errors
Make hospital services more transparent
Limit “free” hospital treatment
Publish hospital quality

Possible Activities
Use of integrated systems where data is
entered once and information is available
where needed
Get internal reporting ready to support public
reporting
Focus on clinical pathways
Set up data on a hospital group level /
provincial level, participate in benchmarking


SAP AG 2002, mySAP Healthcare Solution Focus Areas24

12

Examples of how
mySAP Healthcare
could assist:
mySAP Healthcare
integrates all data in
your enterprise –
financial, logistic,
personnel, patient data,
etc.
mySAP SCM for
Healthcare integrates
the internal clinical
supply chain with
external procurement
mySAP BI combines all
this data regardless of
its source.

mySAP Healthcare

Basque Region (Spain) about
mySAP Healthcare:

“Now there is centralized hospital management.
Each hospital gets funding on a contract basis
per service. This new approach is more modern
and entrepreneurial. The SAP project was the
cornerstone of the whole reform. With the new
system, we needed information that was
integrated and had required functionality.”
SAP Project Manager from Basque Region in Spain



SAP AG 2002, mySAP Healthcare Solution Focus Areas25

Business Need: Manage Competition, Mergers & Acquisition
Competition, Mergers & Acquisition

„
„
„
„

Complex IT landscape
High TCO, missing IT skills
Difficulties for end users
Differentiation

mySAP Enterprise Portals
provide seamless
integration of systems
from different vendors.

Possible Activities
„ Integrate IT infrastructure
„ Deploy role-based enterprise portals
to offer unified access to different
systems and sources of information
„ Provide services centrally
„ Consolidate information
„ Provide unique logon
„ Establish brand



Examples of how mySAP
Healthcare could assist:

SAP AG 2002, mySAP Healthcare Solution Focus Areas26

13

mySAP Technology
provides a framework for a
fully integrated IT
landscape, e.g. single
sign-on.
SAP Financials and BI
contain enterprise-wide
consolidation of financial,
administrative and patientrelated data.

Example: Frontend Integration with Enterprise Portals

Networked
Software

Role-Specific Enterprise Portal



SAP AG 2002, mySAP Healthcare Solution Focus Areas27

mySAP Enterprise Portal: Data Warehouse Access



SAP AG 2002, mySAP Healthcare Solution Focus Areas28

14

Centralize Your Enterprise Services



SAP AG 2002, mySAP Healthcare Solution Focus Areas29

mySAP Technology
Hospital of the “Barmherzigen
Schwestern” Linz (Austria) about
mySAP Technology:

“Basis for the project were the many isolated applications
within our old IT landscape.
The integrated, patient-centric view facilitates the choice for
optimal treatment.”
Dr. Christian Gierlinger, IT-Manager



SAP AG 2002, mySAP Healthcare Solution Focus Areas30

15

Summary of Benefits
and ROI References

What Drives Our Customers ...

3

2

Increased Patient
Expectations

Regulation / Legal Requirements

Healthcare Provider
Organization

1

4

Limited Budgets

5
Competition, Mergers & Acquisitions


SAP AG 2002, mySAP Healthcare Solution Focus Areas32

16

Public Initiatives

Changing Healthcare Environment

Spanish customer about the changing
healthcare environment:

“Our hospital needs to look at itself differently. We need to
focus on things like productivity and ROI. In other words,
we need to begin to see ourselves like a business.”

SAP Project Leader in Spain



SAP AG 2002, mySAP Healthcare Solution Focus Areas33

mySAP Healthcare – Benefits and ROI
Personnel

ƒ Staff is more productive

Admission department can
handle 33% more patients

Procurement

ƒ Reduced procurement costs

Procurement costs reduced
by 3% due to vendor
discounts, with expected
reductions from 5% to 10%
after the system is in place
for more time

ƒ Better relationship with vendors
ƒ Leverage volume discounts via centralized purchasing
ƒ Faster payment cycle resulting in better payment terms

Inventory

ƒ Lower inventory numbers due to centralized buying and more global

view of materials management
Information

ƒ Higher quality of information

Inventory levels decreased
by 10%
Number of payroll mistakes
decreased from 30% to 5%

ƒ Better information visibility
ƒBetter information integration

Financial
Management

ƒ Improved financial processes and controlling functions
ƒ Decrease the time to close books
ƒ Increased cost visibility

Patient Billing

Time to pay debts reduced
from 50 days to 30 days

ƒ Improved and faster bill collections
ƒ Respond to patient billing questions more easily, resulting in better

patient service 2.5
Patient Service

Time to close books
decreased from 6 months to
2.5 months

Time to send a bill reduced
from 3 weeks to 1 day
Number of unpaid claims
decreased by 5%

ƒ Improvements in collecting and integrating patient information
ƒ Length of time spent waiting for lab results decreased
ƒ More personalized patient service

Source: Benchmarking Partners: Overview and Results of the SAP ROI Assessment in Healthcare


SAP AG 2002, mySAP Healthcare Solution Focus Areas34

17

mySAP Healthcare – Benefits and ROI
Purchased
Materials Cost
Reduction

ƒ SAP enables organizations to partner with suppliers to collectively identify

opportunities to reduce costs and improve service

2-3% reduction of
materials costs

ƒ Negotiate more effectively with suppliers
ƒ Decrease the number of standard items purchased
ƒ Consolidate vendors
ƒ Reduce acquisition costs by reducing the number of purchase orders required

Inventory and
Inventory Carrying
Cost Reduction

ƒ Inventory reduction of materials and supplies

Reduce inventory

levels, ranging
… can handleIncreased
33%
more patients
inventory visibility and accuracy
from 10%-90%
Improved forecasting and planning capabilities
… time to close books from 6 to 2.5 months
Lower inventory carrying costs
Savings of 50% for
Streamline order
and payment processingby 10%
… Procurement
inventory
levels
decreased
each order
Process Cost
Reduce errors and exceptions
processed with
Reduction
mySAP Healthcare
… time to send a bill reduced from 3 weeks to 1 day
ƒ
ƒ
ƒ

ƒ
ƒ

IT Program Cost
Reduction

ƒ Reduce IT costs by replacing standalone systems with mySAP Healthcare

Savings of up to
25%

Data Consistency
and Accuracy
Access to RealTime Information

ƒ Time savings
ƒ Employees can manage their departments better and deal with issues as they occur
ƒ Facilitate faster assessment and decision-making

Migration from
Administrative to
Value-Added
Activities

ƒ Spend more time analyzing exceptions than looking for exceptions
ƒ Focus on planning instead of fire-fighting

Source: The ROI Report: Implementing SAP in the Public Services Sector


SAP AG 2002, mySAP Healthcare Solution Focus Areas35

What Makes mySAP Healthcare Unique?

Unique vision and implementation of integrated clinical,
patient administrative and financial processes
Many years of experience in the healthcare sector
(deployed in over 800 hospitals worldwide) guarantee the
implementation of best practices for Healthcare

ou
y
k

Healthcare customers have shown that mySAP
Healthcare enables them to maximize the value of their IT
investment

T

n
a
h

SAP combines leading technology with low total cost of
ownership
It gives the flexibility to adapt IT to changing business
processes


SAP AG 2002, mySAP Healthcare Solution Focus Areas36

18

Copyright 2001 SAP AG. All Rights Reserved



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