ERP Case Study on Fortis

Hospital
Poorvi Shetty
Supraja M
CSE 8th Sem
Introduction
● Enterprise Resource Planning (ERP) systems offer great promise to businesses wanting to
consolidate and integrate various elements of business practice.
● Implementing an ERP system can be demanding, but it can also improve operations and efficiency.
● ERP adoption in complex organizations: ERP implementation in hospitals does not automatically
imply fully integrated processes and applications.
● Objectives of ERP adoption in healthcare : Minimizing costs, improving operations, and
establishing a flexible computing platform for better adaptation.
● Description of ERP systems : ERP systems are packaged business software that provide a total
integrated solution for an organization's information processing needs.
Problem Statement
 Statement Problem:

● ERP systems are complex, require significant investments, and can lead to implementation failures
if not properly managed.
● Need to learn from others: Studying experiences and practices of other organizations can help
identify critical issues and avoid implementation failures.
● ERP integration was needed in Fortis Hospital
Description of Fortis Hospital
● Fortis Healthcare overview: Vision of company “To create a world-class integrated healthcare
delivery system in India, entailing the finest medical skills combined with compassionate patient
care”
● One of Asia's largest healthcare service providers
● Fortis Hospital's network and capabilities: Multi-specialty hospitals, tele-medicine network, ICU
management, ER management, radiology reporting, pathology reporting, and training and
education opportunities.
● Growth and achievements of Fortis Hospital: Expansion from 1 hospital to a network of 55
hospitals, leadership in cardiac sciences, neuro sciences, and orthopedics, business model
evolution, brand equity, and acquisition capabilities.
Pre-ERP implementation scenario
● Prior to implementing an ERP system, Fortis Hospital faced various challenges and limitations in
its operations.
● The hospital had fragmented processes and systems that lacked integration, resulting in
inefficiencies and difficulties in managing different functions.
● Key challenges included issues with data standardization, lack of supply chain integration,
inefficiencies in revenue cycle management, difficulties in integrating clinical systems, coding and
billing problems, non-compliance with policies, inventory management issues, and more.
● These challenges posed obstacles to providing seamless patient care and optimizing backend
operations.
● Addressing these issues was crucial for improving operational efficiency, reducing costs, and
delivering high-quality healthcare services.
Business Need of ERP
● In this context patients demand more than the previous days and naturally want the best return for
the money. When a patient is not satisfied he/she will not visit the hospital anymore.
● When it comes to treatment there should not be more than minor discrepancies among hospitals
that are off at the same standards.
● Fortis management thought to upgrade the old system because there were some problems in the
old system like:
○ Insurance and claim management
○ Supply Chain & Material Management,
○ No appropriate traceability in blood bank services of different type of blood group
availability in the hospital
Selection of ERP
Why Religare Magnum ERP?
● Currently with over 2600 employees and presence in over ten countries, Religare Technologies is poised to be a
leader in the global IT Services space.
● Religare Technologies focuses on clients in key verticals such as financial services, insurance, capital markets and
health sciences (HealthCare & Life sciences).
● Fortis Cunningham Road, Bangalore hospital is a centre for excellence in Interventional Cardiology and Cardiac
Surgery. Earlier ERP system PCMS through Tata Consultancy Services (TCS) in Fortis Hospital was getting
outdated and was not capable of meeting hospital’s demanding management processes.
● There was a need for an effective integrated ERP system to be in place to regularise and support the processes with
respect to patient, supply chain, clinical and finance management. Religare’s ‘Magnum Suite’ was found to be the
best suit and the same has been opted for Fortis Hospitals.
Implementation of ERP
● Religare Technologies Magnum Suite is a web-based, state-of-the-art Hospital Information
Management System (HIMS), which provides healthcare providers with the tools to ensure
compliance to processes and transactional efficiency related to clinical functions.
● Magnum Suite computerises principal operations like administrative, clinical, and financial
functions in a hospital. It is a modularly designed system enabling computerisation in phases.
● Magnum Suite provides excellent clinical information to ensure patient care is handled with
utmost priority; it generates extensive management reports, operational statistics and offers a
powerful query module.
● Magnum Suite is an easy-to-use system with an intuitive Graphical User Interface (GUI)
developed to run under Microsoft SQL Server/Oracle – the leading Relational Database
Management Systems.
Following important process and operation description for a hospital are as follows, which was very
much available in Religare Magnum:

● Planned admissions: Doctor fills up the OT booking/admission form for the patient. Calls up the
admission desk for prior booking. The patient is sent to the admission desk with the filled OT
booking/admission form. Patients are advised to deposits and collected at the time of admission.
● Direct admissions: Referral patients carry the admission notes from the referred doctors to the
admission desk. Deposits are collected at the time of admission and during the patient stay. In case
the patient is availing packages, 90% of the package amount is collected at the time of or prior to
admission.
● Transfers: Transfers within same ward, transfers to different bed in different ward, consultant
transfers. Transfer request will be acknowledged and confirmed only by the front office desk and
automatic refresh once the transfer confirmed.
● Discharges: Patient discharge is initiated by the nurses on instruction of the doctors and then nurse
notifies the pharmacy and billing of the discharge intimation. The pharmacy and billing personnel
reconcile the bills for the patient to be discharged and notify the nurse. Discharge summary is
handed over at the time of discharge.
● Billing: Both cash and credit billing is followed at the hospital. Cash and credit portion of the bills
are segregated in the bill and cash amount non-medical consumables will be debited to the patient.
Each of the inpatient bills are segregated into patient header and details.
● Service tax computation: Service tax is levied for bills paid by insurance/third party
administrators. On the sponsor amount a basic service tax of 10.1% is computed. On the basic
service tax 2% of education cess is computed. In case there is a co-payment levied on patients, the
co-pay is deducted from the final bill and the service tax is levied on sponsor amount of the bill.
● All procedure packages: Medical and surgical packages are available at Fortis Hospitals,
Cunningham road. All the services availed are displayed in the bill and bed category wise
configuration of packages. Service limit is defined for various services like pharmacy, room tariff,
investigations and doctor consultation.
Benefits and Results
● ERP helped to better coordinate activities concerning individual patients, thus shortening the time
that the patient stays in the hospital.
● Monthly and average per day revenue of hospital also increased after implemented Religare Magnum
ERP system, monthly revenue in Fortis Hospital (Cunningham Road) in January 2011 before
implementation of Religare Magnum ERP was 465.09 lakhs and after implementation in August 2011
increase by 519.47 lakhs.
● Able to see various MIS reports in SCM, insurance and claim management, clinical management, etc.,
which has increased level of comfort for patient and management both.
Conclusion
● The implementation of ERP system is strategic, complex and expensive activity.
● Having to extend its scope beyond operational improvements induced by the software’s
functionality and generally expressed by a reduction in costs to the strategic impact of ERP on the
competitive position of the organisation and as the complexity of hospital system increases,
managing the medical and non medical processes become the critical issue for the hospital.
● Typically, the processes are carried out through cooperation of medical and support staff, engineers
and so on scattered across space and time.
● It is becoming necessary to provide an infrastructure for overall medical resources in a competitive
yet cooperative environment.
Thank you!