Enterprise Resource Planning Of Bumrungrad Hospital

This report is to give the information about Enterprise Resource Planning system of Bumrungrad Hospital. This report is divided into four parts; Bumrungrad Hospital overview, product and vendor overview, the system implementation, as well as the system's critical success factor.

Formed in 1980, Bumrungrad is one of Asia's largest private hospitals providing care to some 850,000 patients a year which some 300,000 are international patients from 154 countries. From opened 200-bed facility, today, Bumrungrad has over 2,600 employees with over 900 physicians and over 700 nurse, 554 inpatient beds and 500 medical units. Almost 400,000 are international patients from over 190 different countries. To cater for the needs of such a culturally diverse market, the hospital has implemented an integrated information solution that can, among other things, itemize medical bills and print drug labels in a variety of languages--all within a few minutes. And to be able to do so means that Bumrungrad's information systems have to be able to link billing information to not just the patient records kept by its medical officers, but also to the drug administration records from its pharmacy.

Moreover, most of the hospital information systems in use have roots in accounting and billing functions. These were bolted on over time to integrate with other functions, department by department. However, a hospital that has taken this approach in developing its IT architecture is likely to end up with a multitude of hardware and software, and databases accumulated from different departments. This means that it has to hire programmers to ensure that the different systems talk with one another. And, as more equipment is added, the system's complexity grows, which means that information is likely to be scattered across many databases. This makes it difficult for hospital staff to access up-to-date information on patients quickly.

It was this quest for instant access to information that prompted Bumrungrad International Hospital, in 2000, to revolutionize its information systems with Global Care Solutions' Hospital 2000 solution, based on Microsoft Windows 2000 operating system and Microsoft SQL Server database solution, and simultaneously retiring a legacy system based on a Sun Microsystems solution that used a mix of Oracle and Informix databases. Now everyone have all their data in one database.

After the first implementation, Bumrungrad has growth in overall size of the company in which the figures will be shown as follows:

Financial Performance ('000 Bt) 2005 2004 2003 2002 2001

Total Current Assets 1,103,842 1,503,740 1,635,878 860,352 856,602

Total Assets 5,727,518 5,021,086 4,456,285 3,561,462 N/A

Total Liabilities 3,031,729 2,960,888 3,196,780 2,969,346 3,211,218

Total Revenues 6,806,775 5,802,299 4,620,311 3,670,149 3,069,942

Net Earnings 1,052,739 934,547 666,488 226,299 200,701

Current Ratio (x) 0.70 1.27 1.98 1.70 1.18

Gross Profit Margin (%) 37.60 35.60 34.60 36.50 N/A

Net Profit Margin (%) 15.50 16.10 14.40 6.20 6.50

Growth on Sales from Hospital Operations (%) 16.90 26.60 25.40 19.00 N/A

Growth on Net Profit (%) 12.60 40.20 194.50 12.80 N/A

Return on Assets (%) 19.60 19.70 16.60 6.30 5.80

Debt to Equity Ratio (x) 1.16 1.44 2.58 5.05 8.46

Interest Coverage (x) 12.94 3.03 8.68 6.96 1.81

The last two ratios show how strongly Bumrungrad has re-emerged from restructuring. Bumrungrad Hospital was forced to suspend trading and restructure in the wake of the Asian financial crisis. Just before the crisis Bumrungrad Hospital took out several large loans in US dollars in order to finance expansion. When the crisis and subsequent Baht devaluations occurred BH was forced to default on its loans.

According to Bumrungrad Hospital management there important changes during the implementation for the company in 2003, Expansion on outpatient capacity had increased 16.7% and it also was awarded as the best small cap company in Thailand by Asia Magazine 2003. Almost every figures on Bumrungrad 2003 report shown to positively change more than 20%, Bumrungrad's cash flow at the end of that year was 987 million baht in 2003 compared to 602 million baht in 2002, it was 64% jump higher than the previous year. Even though, Cash account for the year 2004 dropped to 653 million baht. The drop was not the loss or any failures of the company's operations but is was the result from the fixed deposits, considered as current investment, at financial institutions for a large amount of 470 million baht

By using IT to improve patient care also the overall performance of the company, Bumrungrad Hospital (BH) wanted to go further in enhancing the patient experience and streamlining the delivery of healthcare with plans for rapid growth and an aggressive pursuit of Thailand's burgeoning international healthcare market. This challenge has shown to be increasingly success every year, larger source of Bumrungrad's revenue tend to shift to the overseas. One reason might be the participation is the joint Commission International Accreditation since February 2002 and Reaccredited in April 2005. The switch in percentage of total revenues from each type of patient is shown in figures below:

Percentage of Total Revenues

Type of Patient 2005 2004 2003

Local 47.00% 51.00% -

International 53.00% 49.00% -

Total 100% 100% -

Outpatients 47.00% 45.90% 46.1%

Inpatients 53.00% 54.10% 53.9%

Total 100% 100% 100%

Bumrungrad Hospital has three subsidiaries, Bumrungrad Medical Center Ltd., Bumrungrad International Ltd. and Vitallife Corporation Ltd., and two associated companies, L.S. Cleaning Co., Ltd. and Global Care Solution S.A. Co., Ltd. All computer systems at Bumrungrad Hospital are developed and implemented by Global Care Solutions. In particular, GCS was a department in BH that later, after successfully create