Mysap Healthcare Focus Areass

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    mySAP HealthcareSolution Focus Areas

    Sapphire Lisbon 2002

    Leo SchneiderVice President

    mySAP HealthcareSAP AG

    Dr. Harald PitzProduct Manager

    mySAP HealthcareSAP AG

    SAP AG 2002, mySAP Healthcare Solution Focus Areas2

    SAP in the Healthcare Industry

    Healthcare is a major industry of SAPs Public Servicespractice, which is operating globally. SAPs Public Servicesbusiness contributes to SAPs overall revenue withapproximately 11%

    SAP has approx. 800 Healthcare installations worldwide. ThemySAP Healthcare solution focuses Healthcare providerorganizations

    mySAP Healthcare offers an end-to-end solution from ERP(back office) to e-Health including solutions for patientmanagement and accounting as well as seamlesslyintegrated clinical solutions provided by partners.

    Customers live since 1994

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas3

    mySAP Healthcare: Customers Worldwide

    Singapore

    SwitzerlandGermany

    Spain Greece

    Indonesia*

    AustriaLuxemburg

    Languages: English, French, German, Spanish, Dutch, and othersSAP Patient Management currently not available for several countries includingAustralia, Brazil, Belgium, Chile, Denmark, Japan, UK; SAP Patient Management

    can be available as a localized version or as project solutions

    NetherlandsCanada*

    Australia

    U.K

    Argentina

    Belgium

    NewZealand

    Denmark

    Brazil

    Chile

    Colombia

    Finland

    India

    Ireland

    Japan

    Malaysia

    Mexico

    Portugal

    SouthAfrica

    TurkeyItaly

    USA

    Israel

    SAP AG 2002, mySAP Healthcare Solution Focus Areas4

    1

    2

    3

    Empowermentthrough healthcare-specific roles, workplaces

    and enterprise portals

    Integrationof clinical and patient-oriented processeswith administrative and financial processes

    Collaborationwork together seamlessly across organizationboundaries as if they were one entity

    mySAP Healthcare: Key Strategic Messages

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas5

    What Drives Our Customers ...

    Healthcare ProviderOrganization

    Limited Budgets

    Regulation / Legal Requirements

    Increased Patient

    Expectations

    Public Initiatives

    Competition, Mergers & Acquisitions

    15

    4

    32

    SAP AG 2002, mySAP Healthcare Solution Focus Areas6

    What Drives Our Customers ...

    Business Needs,Activities of Our

    Customers and SAPsSolution Offering

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas7

    Business Need: Manage Limited Budgets

    Limited Budgets

    Cost Pressure e.g.

    Budget caps, budget cuts

    Limited revenue opportunities

    Losses, decreasing profits

    Examples of how mySAPHealthcare could assist:

    mySAP Business

    Intelligence assists you ingaining insight into whichclinical processes driveyour costs.

    mySAP SRM helps you tocut your inventories, toreduce your procurementcosts and to integrate yourinternal clinical supplychain.

    SAP Patient Managementscheduling enables you toplan and manage yourpatient visits effectively.

    Possible Activities

    Increase cost and revenuetransparency

    Reduce process costs

    Standardize clinical processes Improve treatment efficiency

    Outsource services

    SAP AG 2002, mySAP Healthcare Solution Focus Areas8

    Service and Revenue Controlling with mySAP BI

    Ad Hoc analysis

    Drilldown down / across

    Filter

    Authorization concept

    OLAP functionality / navigation

    Exceptions and conditions

    ...

    Ad Hoc analysis

    Drilldown down / across

    Filter

    Authorization concept

    OLAP functionality / navigation

    Exceptions and conditions

    ...

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas9

    Occupancy Monitoring with mySAP BI

    SAP AG 2002, mySAP Healthcare Solution Focus Areas10

    mySAP Business Intelligence for Healthcare

    SAP BW is open for non-SAP data from clinicalsystems and supports different types of CostObject Controlling so that cost object data can be

    combined at case level.Dr. Christiane Hinck-Kneip, Coding Director

    University Hospital Kiel aboutmySAP BI for Healthcare:

    Manfred Baxmann, CFO

    SAP BW more than convinced us just in thepilot phase!

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas11

    Key Challenges for Procurement

    Source: Purchasing Magazine

    Creation and processing of purchase order (PO) costsbetween 30 - 250!

    Procurement of indirect goods and servicesaccounts for 30-60% of the total spend of anorganisation

    Overhead costs for procuring a 5 item are thesame as for a 4,000 item

    There are 39 steps (plus or minus ten) neededto process an average PO in the traditionalway

    SAP AG 2002, mySAP Healthcare Solution Focus Areas12

    mySAP Supply Chain Management for Healthcare

    The information system and related process improvementsaved from $4 million to $6 million in supply managementcosts in 1997, the first year of operation.

    Montefiore Medical Center aboutmySAP SCM for Healthcare:

    Charles Agins, Vice President of Finance

    Elaine Brennan, Vice President of Operations

    The supply management and financial reporting capabilities

    of the enterprise resource planning system are crucial toMontefiore's efforts to be competitive on quality, pricing andservice in the New York healthcare market.

    The person ordering the supplies can see the itemsconfirmed, track their progress, know when they're receivedand verify that an invoice was presented and paid.

    Joseph DiChiara, Manager of Contracts and Vendor Relations

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas13

    Business Need: Manage Regulation / Legal Requirements

    Regulation / Legal Requirements

    Processes such as accounting depend onlegal requirements (e.g. DRG-based)

    Public healthcare reporting

    HIPAA (US)

    Frequent changes

    Examples of how mySAPHealthcare could assist:

    mySAP Business

    Intelligence has theflexibility to meet yourreporting needs.

    SAP Patient Managementbilling provides a flexiblerule-based frameworkwhich enables thedeployment of variousbilling systems.

    mySAP Healthcare isimplemented in more than30 countries worldwideand meets and combinesthe needs of varioushealthcare systems.

    Possible Activities

    Deploy flexible, powerful and globallyavailable solution to be flexible and

    able to respond to changes quickly

    Establish flexible reporting meetinginternal and external, current andfuture needs

    Use IT assisting in changemanagement (instead of a barrier)

    SAP AG 2002, mySAP Healthcare Solution Focus Areas14

    Example: Workplace for DRG-Based Documentation

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas15

    SAP Patient Management

    SAP Patient Management - a solid, dependable and flexibleproduct. The implementation project was finished on time andwithin budget, the go-live was smooth and the users aresatisfied with the system functionality.

    Osvaldo Mauro, Director of the Informatics Project

    Hospital Britanico de Buenos Aires

    about SAP Patient Management:

    SAP AG 2002, mySAP Healthcare Solution Focus Areas16

    SAP BW Base for mySAP Business Intelligence

    SAP BW

    mySAPHealthcare

    SAP SAP SAP

    SEM

    - Planning and Simulation- Balanced Scorecard

    Benchmarking BW Reporting

    Analytical Applications

    mySAP Enterprise Portalse.g. for Hospital Chief Executive Officer

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas17

    mySAP Business Intelligence for Healthcare

    What impressed us most of all were the simple, flexible dataextraction options and the high degree of integration withmySAP Healthcare.

    In particular, users are pleased with the option that enables

    them to generate creative, ad hoc evaluations.

    Manfred Volmer, Business Manager Schoen Clinics

    Schn Clinics Group aboutmySAP BI for Healthcare:

    SAP AG 2002, mySAP Healthcare Solution Focus Areas18

    Business Need: Manage Increased Patient Expectations

    Increased Patient Expectations Ageing population

    Increased demand for information

    Improve patient relations & satisfaction

    Consumerism

    Examples of how mySAP

    Healthcare could assist:

    mySAP Enterprise Portalsprovide role-basedinformation & patientservices via the web.

    mySAP CRM CustomerInteraction Center helpsyou to manage your

    patient relations usingvarious channels.

    SAP Patient Managementhelps you to managewaiting lists effectivelyand reduces waiting timefor treatments.

    Possible Activities

    Establish various informationchannels, e.g. phone, fax and Web

    Manage waiting lists effectively

    Reduce waiting time

    Extended ways of consumer focusand patient interaction

    Prepare for (published) hospitalbenchmarks

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas19

    mySAP CRM for Healthcare

    Turning customer orientation into a powerful competitive advantage foryour healthcare organization

    Patients External physicians

    Clinics

    Citizens

    ...

    Interact with Patientsand GPs through the CIC

    Campaigns for TreatmentFollow-Up

    Home Care Services

    Analyze Patient Segments

    SAP AG 2002, mySAP Healthcare Solution Focus Areas20

    mySAP CRM CIC Provide Central Source of Information to YourPatients

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas21

    Example: Waiting List Processing Including Planning for Surgeryand Admission

    Display of

    Waiting List

    Planning Tool for

    Surgery andAdmission

    SAP AG 2002, mySAP Healthcare Solution Focus Areas22

    Example: Scheduling an Outpatient Follow-Up Visit

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas23

    mySAP Healthcare

    Besides optimized patient orientation, time andcost savings are the result of the projects wide

    scope.

    Hospital of the BarmherzigenSchwestern Linz (Austria) about

    mySAP Healthcare:

    SAP AG 2002, mySAP Healthcare Solution Focus Areas24

    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

    Examples of how

    mySAP Healthcarecould assist:

    mySAP Healthcareintegrates all data inyour enterprise financial, logistic,personnel, patient data,etc.

    mySAP SCM forHealthcare integratesthe internal clinicalsupply chain withexternal procurement

    mySAP BI combines allthis data regardless ofits source.

    Possible Activities

    Use of integrated systems where data is

    entered once and information is availablewhere needed

    Get internal reporting ready to support publicreporting

    Focus on clinical pathways

    Set up data on a hospital group level /provincial level, participate in benchmarking

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas25

    mySAP Healthcare

    Now there is centralized hospital management.Each hospital gets funding on a contract basisper service. This new approach is more modernand entrepreneurial. The SAP project was thecornerstone of the whole reform. With the new

    system, we needed information that wasintegrated and had required functionality.

    SAP Project Manager from Basque Region in Spain

    Basque Region (Spain) aboutmySAP Healthcare:

    SAP AG 2002, mySAP Healthcare Solution Focus Areas26

    Business Need: Manage Competition, Mergers & Acquisition

    Competition, Mergers & Acquisition Complex IT landscape

    High TCO, missing IT skills

    Difficulties for end users

    Differentiation

    Examples of how mySAP

    Healthcare could assist:

    mySAP Enterprise Portalsprovide seamlessintegration of systemsfrom different vendors.

    mySAP Technologyprovides a framework for afully integrated IT

    landscape, e.g. singlesign-on.

    SAP Financials and BIcontain enterprise-wideconsolidation of financial,administrative and patient-related data.

    Possible Activities

    Integrate IT infrastructure

    Deploy role-based enterprise portalsto offer unified access to differentsystems and sources of information

    Provide services centrally

    Consolidate information

    Provide unique logon

    Establish brand

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas27

    Example: Frontend Integration with Enterprise Portals

    Role-Specific Enterprise Portal

    Networked

    Software

    SAP AG 2002, mySAP Healthcare Solution Focus Areas28

    mySAP Enterprise Portal: Data Warehouse Access

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas29

    Centralize Your Enterprise Services

    SAP AG 2002, mySAP Healthcare Solution Focus Areas30

    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

    Hospital of the BarmherzigenSchwestern Linz (Austria) aboutmySAP Technology:

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    Summar of Benefitsand ROI References

    SAP AG 2002, mySAP Healthcare Solution Focus Areas32

    What Drives Our Customers ...

    Healthcare ProviderOrganization

    Limited Budgets

    Regulation / Legal RequirementsIncreased Patient

    Expectations

    Public Initiatives

    Competition, Mergers & Acquisitions

    15

    4

    32

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas33

    Changing Healthcare Environment

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

    SAP Project Leader in Spain

    Spanish customer about the changinghealthcare environment:

    SAP AG 2002, mySAP Healthcare Solution Focus Areas34

    mySAP Healthcare Benefits and ROI

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

    Improvements in collecting and integrating patient information

    Length of time spent waiting for lab results decreased

    More personalized patient service

    Patient Service

    Time to send a bill reducedfrom 3 weeks to 1 day

    Number of unpaid claimsdecreased by 5%

    Improved and faster bill collections

    Respond to patient billing questions more easily, resulting in betterpatient service 2.5

    Patient Billing

    Time to close booksdecreased from 6 months to

    2.5 months

    Time to pay debts reducedfrom 50 days to 30 days

    Improved financial processes and controlling functions

    Decrease the time to close books

    Increased cost visibility

    FinancialManagement

    Number of payroll mistakesdecreased from 30% to 5%

    Higher quality of information

    Better information visibility

    Better information integration

    Information

    Inventory levels decreasedby 10%

    Lower inventory numbers due to centralized buying and more globalview of materials management

    Inventory

    Procurement costs reducedby 3% due to vendordiscounts, with expectedreductions from 5% to 10%after the system is in placefor more time

    Reduced procurement costs

    Better relationship with vendors

    Leverage volume discounts via centralized purchasing

    Faster payment cycle resulting in better payment terms

    Procurement

    Admission department canhandle 33% more patients

    Staff is more productivePersonnel

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas35

    mySAP Healthcare Benefits and ROI

    Spend more time analyzing exceptions than looking for exceptions

    Focus on planning instead of fire-fighting

    Migration fromAdministrative toValue-AddedActivities

    Time savings

    Employees can manage their departments better and deal with issues as they occur

    Facilitate faster assessment and decision-making

    Access to Real-Time Information

    Data Consistency

    and Accuracy

    Savings of up to25%

    Reduce IT costs by replacing standalone systems with mySAP HealthcareIT Program CostReduction

    Savings of 50% foreach orderprocessed withmySAP Healthcare

    Streamline order and payment processing

    Reduce errors and exceptions

    ProcurementProcess CostReduction

    Reduce inventorylevels, rangingfrom 10%-90%

    Inventory reduction of materials and supplies

    Increased inventory visibility and accuracy

    Improved forecasting and planning capabilities

    Lower inventory carrying costs

    Inventory andInventory CarryingCost Reduction

    2-3% reduction ofmaterials costs

    SAP enables organizations to partner with suppliers to collectively identifyopportunities to reduce costs and improve service

    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

    PurchasedMaterials CostReduction

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

    can handle 33% more patients

    time to close books from 6 to 2.5 months

    inventory levels decreased by 10%

    time to send a bill reduced from 3 weeks to 1 day

    SAP AG 2002, mySAP Healthcare Solution Focus Areas36

    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 theimplementation of best practices for Healthcare

    Healthcare customers have shown that mySAP

    Healthcare enables them to maximize the value of their ITinvestment

    SAP combines leading technology with low total cost ofownership

    It gives the flexibility to adapt IT to changing businessprocesses

    Thankyo

    u

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    SAP AG 2002, mySAP Healthcare Solution Focus Areas37

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