Addressing Top 10 Challenges in Healthcare with an ERP Solution

There are “n” number of major challenges in Healthcare that are addressed with a Healthcare ERP Solution. U.S. healthcare spending rose by 7.5% in 2023, reaching $4.9 trillion, or $14,570 per person. This made up 17.6% of the country’s Gross Domestic Product. Enterprise Resource Planning (ERP) was first developed for industries that depended on logistics and supply chains. Using an ERP system helped businesses gain the general benefits mentioned earlier.

Healthcare focuses on individual health, but it still operates like an industry. Hospitals and physician networks order medical supplies and distribute them to operating rooms, exam rooms, and patients through a supply chain. Scheduling patient care also follows a logistics model, where provider availability, procedure planning, and equipment reservations all play key roles.

ERP in healthcare is a natural extension of this structured approach. While healthcare has unique aspects, it still depends on cost control and detailed data insights whether for surgical tools, imaging reports or patients themselves. Healthcare ERP solutions help streamline these processes for better efficiency.

What is Healthcare ERP Solution?

Healthcare ERP Solution combines different processes into one system, making data management, resource allocation, and decision-making more efficient. This centralized system improves communication and teamwork, with customized solutions designed to meet industry-specific needs and boost overall efficiency.

Addressing Challenges in Healthcare with an ERP Solution

From data security risks to financial inefficiencies, the healthcare industry faces numerous challenges. Many of these issues stem from outdated or disconnected systems which makes it difficult for healthcare providers to manage operations effectively. Enterprise Resource Planning (ERP) solutions integrate various processes into a unified platform, enhancing efficiency, security, and decision-making. By streamlining workflows, automating tasks, and improving data accessibility, ERP solutions enable healthcare organizations to deliver better patient care while optimizing resources. This article explores ten key challenges in healthcare and how ERP solutions can address them, ensuring a more resilient and efficient system.

1. Strengthening Protection Against Cyber Threats

With cyberattacks on the rise, safeguarding patient data is a top priority for healthcare organizations. In the past year, 66% of health systems faced major cybersecurity incidents, with breaches costing an average of $10.1 million. Cloud ERP solutions enhance security with encryption, multi-factor authentication (MFA), and role-based access controls (RBAC), ensuring compliance with regulations like HIPAA and protecting sensitive patient information.

2. Fixing Financial Leaks

Healthcare organizations lose up to 15% of revenue due to billing errors, denied claims, and unpaid care. Cloud ERP solutions streamline revenue cycle management by automating invoicing, claims processing, and payments. With real-time financial insights, healthcare providers can quickly identify and fix revenue gaps, improving cash flow and reducing financial losses.

3. Big Data

Hospitals generate massive amounts of data—about 137 terabytes daily—but 80% of it is unstructured and hard to use. Cloud ERP systems organize and analyze this data, helping healthcare leaders make better clinical, operational, and financial decisions. With AI and machine learning, these systems can uncover hidden patterns, predict trends, and proactively address challenges.

4. Slow Clinical Workflows

Despite widespread use of electronic health record (EHR) systems, many hospitals still deal with inefficient workflows that slow down care and cause burnout. Cloud ERP solutions integrate with EHRs, automate manual tasks, and provide real-time data access. This reduces administrative burdens, improves coordination, and frees up more time for patient care.

5. Workforce Management

The healthcare industry is facing a shortage of up to 124,000 doctors and 510,000 nurses by 2034. Cloud ERP solutions help address these shortages with advanced workforce management tools. They streamline hiring, onboarding, and training, track productivity, and support employee well-being—helping healthcare organizations attract, retain, and develop top talent.

6. Patient Engagement with Personalized Care

Patients expect seamless, personalized healthcare experiences. Cloud ERP solutions improve engagement with self-scheduling, patient portals, and omnichannel communication. By using AI-driven insights, providers can tailor care to individual needs, fostering patient loyalty and improving outcomes.

7. Price Transparency

New laws like the Hospital Price Transparency Rule and the No Surprises Act require healthcare providers to share clear pricing information with patients. Creating price lists and billing statements can be complex, but cloud ERP solutions simplify compliance. They also improve the patient experience by offering easy-to-understand cost estimates, personalized billing, and self-service payment options.

8. Regulatory Compliance Challenges

Healthcare is heavily regulated by compliances to make sure that the patient information remains secure and their lives aren’t at stake at any critical time. With strict regulations like HIPAA and the 21st Century Cures Act, non-compliance can lead to heavy fines. Cloud ERP solutions provide audit trails, secure storage, and automated reporting, ensuring organizations stay compliant while minimizing risk. These tools help healthcare providers focus on patient care instead of regulatory hurdles.

9. Changing Healthcare Landscape

Alternative care models like retail clinics and direct-to-consumer telehealth are reshaping the industry. Urgent care centers are growing at 7% annually, with 80% of Americans now within 10 minutes of one. To stay competitive, healthcare providers must use cloud ERP solutions for real-time data insights, optimizing resources, improving efficiency, and enhancing patient care.

10. Telehealth

The COVID-19 pandemic drove a surge in telehealth, now making up 5% of all medical claims. Mental and behavioral health services account for nearly 70% of these visits. As virtual care becomes a standard offering, cloud ERP systems help healthcare organizations manage scheduling, documentation, billing, and reimbursement efficiently, providing the flexibility needed to support telehealth services at scale.

How does Himcos help?

Himcos provides Healthcare services technology consulting and development services. By simplifying workflows for healthcare providers, we build cloud-native, AI-powered software solutions to transform clinical and financial data into actionable insights. Our platform grows alongside your healthcare institution, with features designed to expand with operations. Thousands of patients receive better care through advanced healthcare data solutions supported by tech expertise at Himcos.