ERP Software for Hospitals
Hospitals and integrated delivery networks require ERP systems that can manage billions of dollars in supply spend, thousands of employees, complex multi-entity financial structures, and real-time integration with clinical systems — all within a HIPAA-compliant environment. The right hospital ERP connects supply chain, finance, human resources, and revenue cycle into a unified operational platform that supports both daily patient care and long-term strategic planning.
Compare ERP Systems for Hospitals
Select up to 4 ERP vendors to compare side by side. Filtered to show systems with strong hospitals capabilities.
Key Challenges for Hospitals
Managing high-volume supply chain procurement across hundreds of clinical departments with contract compliance and preference card alignment
Maintaining HIPAA-compliant financial and operational data management across multi-hospital enterprise environments
Integrating ERP financial and supply chain data with clinical systems (EHR) in real time without costly custom interfaces
Controlling labor costs and managing complex healthcare workforce scheduling across nursing, allied health, and administrative staff
Achieving accurate cost accounting and service-line profitability analysis in a mixed reimbursement environment (fee-for-service and value-based care)
Managing capital equipment procurement, depreciation, and lifecycle tracking for expensive medical technology assets
Complying with 340B drug pricing program requirements and ensuring accurate medication cost capture across facilities
Best Hospitals ERP for SMBs
Recommended for companies with $10M–$250M revenue and 10–200 employees.
Sage Intacct
mid-rangeAICPA-preferred cloud financial management platform with strong healthcare-specific revenue recognition, grant management, and multi-entity consolidation suited to community hospitals and specialty facilities.
Best for: Community hospitals and specialty facilities under 500 beds
NetSuite
mid-rangeCloud ERP with healthcare industry edition covering financial management, fixed assets, and purchasing. Well-suited for hospital groups that need scalable multi-entity financials without enterprise complexity.
Best for: Small hospital groups and ambulatory surgery centers
Microsoft Dynamics 365 Business Central
mid-rangeAccessible cloud ERP with strong financial management, procurement, and HR modules. Integrates well with Microsoft 365 tools widely used in healthcare administration.
Best for: Critical access hospitals and small regional facilities
Acumatica
mid-rangeCloud-native platform with unlimited-user licensing and strong financial management, project accounting, and distribution modules adaptable to healthcare operational needs.
Best for: Growing multi-site community health organizations
Odoo
budgetModular open-source ERP covering procurement, inventory, HR, and accounting. Suitable for smaller facilities with strong IT resources and a need for cost-effective operational management.
Best for: Small hospitals and outpatient facilities with IT capability
Workday Financial Management
premiumCloud-native finance and HR platform widely adopted by health systems for its unified workforce and financial management capabilities and strong analytics for operational decision-making.
Best for: Mid-size regional health systems seeking HR and finance unification
Best Hospitals ERP for Enterprise
Recommended for companies with $250M+ revenue and complex multi-site operations.
Infor CloudSuite Healthcare
enterprisePurpose-built healthcare ERP with deep supply chain management, clinical supply matching, financial management, and pre-built integrations to Epic, Oracle Health, and Cerner. Leading choice for large health systems.
Best for: Large integrated delivery networks and academic medical centers
SAP S/4HANA
enterpriseComprehensive enterprise platform with advanced financial management, multi-entity consolidation, and supply chain capabilities configured for healthcare provider environments.
Best for: Large health systems with complex financial and supply chain requirements
Oracle ERP Cloud
enterpriseFull cloud ERP suite with strong financial management, procurement, project accounting, and analytics well suited to large hospital systems and academic medical centers.
Best for: Academic medical centers and large multi-hospital systems
Microsoft Dynamics 365 Finance & Supply Chain Management
enterpriseScalable enterprise platform with strong supply chain, financial management, and workforce capabilities. Popular in health systems already invested in the Microsoft technology stack.
Best for: Health systems leveraging Microsoft Azure and Office 365 ecosystems
Essential ERP Capabilities for Hospitals
HIPAA-compliant financial management with role-based access controls and audit logging
Multi-entity general ledger with fund accounting and healthcare chart of accounts
Healthcare supply chain management with contract compliance and GPO integration
Clinical supply matching and preference card management linked to OR and procedural area demand
Fixed asset management for medical equipment and capital project tracking
Healthcare revenue cycle integration with charge capture and accounts receivable
340B drug pricing program compliance tracking and split-billing support
Healthcare workforce management with credential tracking, shift scheduling, and overtime controls
Real-time EHR integration via HL7 FHIR and interface engine connectivity
Service-line profitability and cost-per-case analytics for value-based care reporting
Hospitals ERP Cost Ranges
SMB
$60,000 – $200,000
10–75 users
Implementation: $50,000 – $175,000
Mid-Market
$200,000 – $900,000
75–400 users
Implementation: $250,000 – $1,200,000
Enterprise
$1,000,000 – $8,000,000+
400–3,000+ users
Implementation: $2,000,000 – $15,000,000+
Implementation Considerations
Map all EHR integration points (Epic, Oracle Health) before ERP selection to ensure vendor has pre-built connectors and proven integration experience
Validate HIPAA Business Associate Agreement (BAA) coverage with the ERP cloud vendor before contract execution
Plan for parallel operation of legacy financial systems during cutover — hospital finance teams cannot tolerate billing disruption
Engage clinical department heads early to align supply chain workflows with ERP processes; resistance from nursing and OR staff is a common adoption barrier
Budget for computer system validation (CSV) if the ERP will process regulated data, and engage compliance resources at project start rather than at go-live
Frequently Asked Questions
What is the difference between an EHR and a hospital ERP system?
An EHR (Electronic Health Record) system manages clinical workflows — patient records, orders, clinical documentation, and care delivery. A hospital ERP manages back-office operations including financial management, supply chain, purchasing, HR, and payroll. Most hospitals run both systems in parallel, exchanging data through integration engines. Epic, Oracle Health, and Meditech are leading EHRs, while Infor CloudSuite Healthcare, SAP S/4HANA, and Oracle ERP Cloud are leading hospital ERPs.
Does hospital ERP software need to be HIPAA compliant?
Yes, if the ERP processes or stores any Protected Health Information (PHI), including patient billing records, claims data, or insurance information. The vendor must sign a Business Associate Agreement (BAA) and the implementation must meet HIPAA Security Rule requirements for access control, encryption, and audit trails. Most enterprise healthcare ERP vendors provide HIPAA-ready cloud environments, but compliance configuration remains the hospital's responsibility.
How does a hospital ERP integrate with Epic or Oracle Health?
Integration is typically achieved through HL7 v2.x or HL7 FHIR APIs, often mediated by an interface engine such as Mirth Connect, Rhapsody, or Microsoft Azure API for FHIR. Pre-built connectors from Infor and SAP to Epic reduce integration development time significantly. Key integration points include charge capture, supply chain item master synchronization, cost center mapping, and employee data exchange.
What is the 340B drug pricing program and how does ERP support it?
The 340B program allows qualifying safety-net hospitals and clinics to purchase outpatient drugs at significantly reduced prices. ERP systems support 340B compliance through split-billing functionality that separates 340B-eligible dispenses from non-eligible ones, tracks drug acquisition costs by program, and generates audit-ready reporting. Dedicated 340B contract pharmacy management tools often integrate with ERP purchasing and inventory modules.
Can hospital ERP handle fund accounting for not-for-profit health systems?
Yes. Leading healthcare ERP platforms including Sage Intacct, Infor CloudSuite Healthcare, and SAP S/4HANA support fund accounting structures required by not-for-profit health systems. This includes restricted and unrestricted fund tracking, grant management, donor reporting, and FASB ASC 958 compliance for nonprofit financial statement presentation.
How long does a hospital ERP implementation typically take?
Community hospitals with limited scope (financials and purchasing) can go live in 6–9 months. Regional hospital systems implementing supply chain and full financial management typically require 12–18 months. Large integrated delivery networks with multi-hospital rollouts and complex EHR integrations commonly span 18–36 months. Phased approaches by module or facility are strongly recommended to manage risk.
What is the biggest risk in a hospital ERP implementation?
Disruption to revenue cycle operations is the highest-risk area. Billing interruptions directly impact cash flow, which can be catastrophic for health systems operating on thin margins. ERP implementations should carefully plan cutover timing around month-end and quarter-end closing cycles, maintain parallel processing periods where feasible, and ensure claims processing and AR management are validated thoroughly before go-live.
How do hospitals measure ROI from an ERP investment?
Primary ROI drivers include supply chain cost reductions (typically 8–15% through contract compliance and utilization management), accounts payable processing efficiency, reduction in duplicate vendor contracts, labor cost management through workforce analytics, and improved financial close cycle time (often reduced by 30–50%). Hospitals should model a 3–5 year payback horizon for enterprise ERP investments.
Explore Other Healthcare & Life Sciences ERP Guides
Related Research & Guides
Need help choosing an ERP for Hospitals?
Tell us about your operations and we'll recommend the best-fit ERP for your industry, company size, and budget.