Mysap Healthcare Focus Areass

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 SAPs Public Services
practice, which is operating globally. SAPs Public Services

business contributes to SAPs 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
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
mySAP Healthcare: Key Strategic Messages
Integration
of clinical and patient-oriented processes

with administrative and financial processes
Empowerment
through healthcare-specific roles, workplaces

and enterprise portals
Collaboration
work together seamlessly across organization

boundaries as if they were one entity
What Drives Our Customers ...
Increased Patient
Expectations
Regulation / Legal Requirements
Healthcare Provider
Organization
Limited Budgets
Public Initiatives
Competition, Mergers & Acquisitions
Business Needs,
Activities of Our
Customers and SAPs
Solution Offering
Business Need: Manage Limited Budgets

Limited Budgets
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.
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 ......
Occupancy Monitoring with mySAP BI
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
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
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
Business Need: Manage 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)

mySAP Business
Intelligence has the
flexibility to meet your
reporting needs.
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.
Example: Workplace for DRG-Based Documentation
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 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
P
SA
mySAP Business Intelligence for Healthcare

Schn 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
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

provide role-based
information & patient
services via the web.
mySAP CRM Customer
Interaction Center helps
you to manage your
patient relations using
various channels.
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
...
Interact with Patients
and GPs through the CIC

Campaigns for Treatment
Follow-Up
Home Care Services
Analyze Patient Segments
mySAP CRM CIC Provide Central Source of Information to Your

Patients
10
Example: Waiting List Processing Including Planning for Surgery

and Admission
Display of
Waiting List
Planning Tool for

Surgery and
Admission
Example: Scheduling an Outpatient Follow-Up Visit
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 projects wide
scope.
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
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
Business Need: Manage Competition, Mergers & Acquisition

Competition, Mergers & Acquisition
Complex IT landscape
High TCO, missing IT skills
Difficulties for end users
Differentiation

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

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
mySAP Enterprise Portal: Data Warehouse Access
14
Centralize Your Enterprise Services
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
15
Summary of Benefits
and ROI References
Increased Patient
Expectations
Healthcare Provider
Organization
Limited Budgets
5
Competition, Mergers & Acquisitions
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
mySAP Healthcare Benefits and ROI

Personnel
Staff is more productive
Admission department can

handle 33% more patients
Procurement
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
Better relationship with vendors

Leverage volume discounts via centralized purchasing
Faster payment cycle resulting in better payment terms
Inventory
Lower inventory numbers due to centralized buying and more global
view of materials management

Information
Higher quality of information
Inventory levels decreased

by 10%
Number of payroll mistakes
decreased from 30% to 5%
Better information visibility

Better information integration
Financial
Management
Improved financial processes and controlling functions

Decrease the time to close books
Increased cost visibility
Patient Billing
Time to pay debts reduced

from 50 days to 30 days
Improved and faster bill collections

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%
Improvements in collecting and integrating patient information

Length of time spent waiting for lab results decreased
More personalized patient service
Source: Benchmarking Partners: Overview and Results of the SAP ROI Assessment in Healthcare
17
mySAP Healthcare Benefits and ROI

Purchased
Materials Cost
Reduction
SAP enables organizations to partner with suppliers to collectively identify
opportunities to reduce costs and improve service
2-3% reduction of
materials costs
Negotiate more effectively with suppliers

Decrease the number of standard items purchased
Consolidate vendors
Reduce acquisition costs by reducing the number of purchase orders required
Inventory and
Inventory Carrying
Cost Reduction
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
IT Program Cost
Reduction
Reduce IT costs by replacing standalone systems with mySAP Healthcare
Savings of up to
25%
Data Consistency
and Accuracy
Access to RealTime Information
Time savings
Employees can manage their departments better and deal with issues as they occur
Facilitate faster assessment and decision-making
Migration from
Administrative to
Value-Added
Activities
Spend more time analyzing exceptions than looking for exceptions

Focus on planning instead of fire-fighting
Source: The ROI Report: Implementing SAP in the Public Services Sector
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
n
a
h
SAP combines leading technology with low total cost of

ownership
It gives the flexibility to adapt IT to changing business
processes
18
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mySAP Healthcare

Solution Focus Areas

Dr. Harald Pitz

SAP in the Healthcare Industry

Healthcare is a major industry of SAPs Public Services

practice, which is operating globally. SAPs Public Services

SAP AG 2002, mySAP Healthcare Solution Focus Areas2

mySAP Healthcare: Customers Worldwide

Languages: English, French, German, Spanish, Dutch, and others

SAP AG 2002, mySAP Healthcare Solution Focus Areas3

mySAP Healthcare: Key Strategic Messages

of clinical and patient-oriented processes

through healthcare-specific roles, workplaces

work together seamlessly across organization

SAP AG 2002, mySAP Healthcare Solution Focus Areas4

What Drives Our Customers ...

Regulation / Legal Requirements

Competition, Mergers & Acquisitions

SAP AG 2002, mySAP Healthcare Solution Focus Areas5

What Drives Our Customers ...

SAP AG 2002, mySAP Healthcare Solution Focus Areas6

Business Need: Manage Limited Budgets

Cost Pressure e.g.

Examples of how mySAP

Budget caps, budget cuts

Losses, decreasing profits

mySAP SRM helps you to

SAP AG 2002, mySAP Healthcare Solution Focus Areas7

Service and Revenue Controlling with mySAP BI

SAP AG 2002, mySAP Healthcare Solution Focus Areas8

Occupancy Monitoring with mySAP BI

SAP AG 2002, mySAP Healthcare Solution Focus Areas9

mySAP Business Intelligence for Healthcare

University Hospital Kiel about

SAP BW is open for non-SAP data from clinical

SAP BW more than convinced us just in the

SAP AG 2002, mySAP Healthcare Solution Focus Areas10

Key Challenges for Procurement

Procurement of indirect goods and services

accounts for 30-60% of the total spend of an

Source: Purchasing Magazine

SAP AG 2002, mySAP Healthcare Solution Focus Areas11

mySAP Supply Chain Management for Healthcare

The supply management and financial reporting capabilities

The person ordering the supplies can see the items

SAP AG 2002, mySAP Healthcare Solution Focus Areas12

Business Need: Manage Regulation / Legal Requirements

Processes such as accounting depend on

Examples of how mySAP

SAP AG 2002, mySAP Healthcare Solution Focus Areas13

Example: Workplace for DRG-Based Documentation

SAP AG 2002, mySAP Healthcare Solution Focus Areas14

SAP Patient Management

Hospital Britanico de Buenos Aires

SAP Patient Management - a solid, dependable and flexible

Osvaldo Mauro, Director of the Informatics Project

SAP AG 2002, mySAP Healthcare Solution Focus Areas15

SAP BW Base for mySAP Business Intelligence

mySAP Enterprise Portals

SAP AG 2002, mySAP Healthcare Solution Focus Areas16

mySAP Business Intelligence for Healthcare

What impressed us most of all were the simple, flexible data

Manfred Volmer, Business Manager Schoen Clinics

SAP AG 2002, mySAP Healthcare Solution Focus Areas17