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MANAGEMENT COLLEGE OF SOUTHERN AFRICA (MANCOSA) ASSIGNMENT COVER SHEET SURNAME FIRST NAME/S STUDENT NUMBER MODULE NAME

ASSIGNMENT NUMBER TUTOR'S NAME EXAMINATION VENUE DATE SUBMITTED SUBMISSION ( ) LOUW CLINTON BRIAN 117226 MANAGEMENT INFORMATION SYSTEMS 2 Trishana Ramlu !an CA"E TOWN TO BE CONFIRME# 1$%A&r%11 1ST SUBMISSION 6 EASTFOR# STREET POSTAL ADDRESS 'NYSNA 6(7) E-MAIL l*u+ lin,*n-.ah**/ */u! WOR'0 CONTACT NUMBERS 3OME0 )11 2$()21) )11 2$(1266 RE%SUBMISSION

MOBILE0 )$227(12)2 COURSE/ INTAKE DECLARATION I hereby declare that the assignment submitted is an original piece of work produced by myself. MBA YEAR 1 % 4ANUARY 2)11

DATE0 1$ A&ril 2)11 SIGNATURE:

T AB L EOFCONT E NT S L IS TOFAB B! "IAT IO#S QUE S T ION1 1/1 C3ALLENGESFACE#BY METRO"OLITAN 3OS"ITAL 1/1/1 'n*+l5675 Mana75m5n, S.s,5mChall5n75 1/1/2 Mana75m5n, In8*rma,i*n S.s,5ms Chall5n75 1/1/2 C*s, *8 MISan6 'MS hall5n75 1/1/1 S5 uri,. an6 Ba !u& Issu5 Chall5n75 1/1/( Chall5n75 &5rsua6in7 9*ar6 m5m95rs QUE S T ION2 2/1 C*m&u,5r 3ar6+ar5 2/2 S*8,+ar5 2/2 C*nn5 ,i:i,. 2/1 S5 uri,. QUE S T ION 2/1 S.s,5ms #5:5l*&m5n, Li85 . l5 2/1/1 S.s,5ms Anal.sis 2/1/2 S.s,5m#5si7n 2/1/2 "r*7rammin7 2/1/1 T5s,in7 2/1/( C*n:5rsi*n 2/1/6 "r*6u ,i*n an6 Main,5nan 5 QUE S T ION! 1/1 E;&lain h*+ TIMM *ul6 s*l:5 ,h5 &r*9l5ms 5;&5ri5n 56 9. 5a h 65&ar,m5n, as s&5 i8i56 9. Gran,, in h5r &r5liminar. in:5s,i7a,i*n 1/2 #is uss ,h5 a66i,i*nal 95n58i,s ,ha, 5a h 65&ar,m5n, an6 ,h5 h*s&i,al as a +h*l5 *ul6 5;&5ri5n 5 9. ,h5 im&l5m5n,a,i*n *8 ,h5 &r*&*s56 in,57ra,56 m56i al mana75m5n, s.s,5m B IB L IO$ A%& '

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L IS TOFAB B R E VIAT IONS D B MS E D I IMIS IMS IT K M K MS L AMP ME D INF O MIS M"S QL PC R D B MS S D L C S QL T IMM VAN VANS VPN ( ata B ase)anage m e nt S ystem ! le ctronic( ata Inte rchange Inte grate d)anage m e nt Inform ationS yste m Inte grate d)anage m e nt S yste m Inform ationT e chnology * nowle dge)anage m e nt * nowle dge)anage m e nt S yste m L inu+, Apache , )yS -L , %& %. %e rl.%ython )e dical Inform ation )anage m e nt Inform ation S yste m )yS tructure d-ue ryL anguage %e rsonal /om pute r e lational ( ata B aseS yste m S yste m s( e0e lopm e nt L ife cycle S tructure d-ue ryL anguage T otallyInte grate d)e dical )anage m e nt Inform ation S yste m "alueAdde d#etwork "alue Adde d#e twork s "irtual %ri0ate#e twork

QUESTION 1 Highlight the challenges faced by Metropolitan Hospital that is also common to many Southern African business enterprises.
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CHALLENGES FACED BY METROPOLITAN HOSPITAL KNOWLEDGE MANAGEMENT SYSTEM CHALLENGE It is clear from the case study that Metropolitan Hospital has no knowledge management system in place. This does not, however, pertain only to Metropolitan Hospital but to companies in the Southern African region as a whole.

1.1.1

The concept of

M is a fairly new one in Southern Africa. Most businesses

were only made aware of it since !""" by business schools and the academic sector by promoting the M concept in their courses and curricula. According to #audon et el $!"%"& p''() knowledge management refers to the set of business processes developed in an organi*ation to create, store, transfer, and apply knowledge. +ffective knowledge management reduces the tendency to ,repeat the mistakes ,or as others call it, ,reinventing the wheel-. This is can prove to be very costly and inefficient to Metropolitan Hospital. The application of the wrong treatment to a patient may lead to malpractice lawsuits. +ffective knowledge management, therefore, can dramatically improve the .uality of services at Metropolitan Hospital. +ffective knowledge management will greatly contribute to improved e/cellence, which is to&

dramatically reduce costs provide potential to e/pand and grow increase value and0or profitability improve the .uality of products and services

1/1/2 MANAGEMENT INFORMATION SYSTEMS CHALLENGE

An analysis by Sarah 1rantt, the new medical director, into the information systems at the various departments revealed the following& Almost all departments have some sort of information system e/cept for the Medical department. This is a very perturbing factor because this department is at the core of what Metropolitan Hospital do.

Those departments ,fortunate- enough to have information systems utili*es IT infrastructure that is obsolete, cumbersome and there is no cohesion between the IT systems of the various departments. The storing of information is unstructured.

A lack of training for staff members $mainly medical) by the human resources department on how to benefit from the effective use of information systems that can lead to improved productivity.

1/1/2 COST OF MIS AND KMS CHALLENGE

There is no doubt that an improvement or total redesign of a firm-s information system will be costly. The cost of developing, updating and maintaining such a system re.uire significant on2going investment of time and money. The problem with Metropolitan Hospital is that they have a limited budget for making improvements and that money is reserved for another pro3ect, namely the opening of a new state2of2the2art cardiac centre. 1.1.4 SECURITY AND BACKUP ISSUE CHALLENGE 4ackup and security procedures are not simply an IT matter, but are an important part of corporate risk management and control. 4ackup measures are an important part of assuring that the hospital can continue to do provide health care services in the event of a system failure, and as part of a larger business continuity plan to address loss of capabilities. Some backup and may be left to the local departments5 however, the backup of mission critical and corporate systems proves to be more difficult and should be organised as a corporate issue. The best backup and security measures still do not ensure that system malfunction will not take place. The reason for this is the human factor. The people responsible for backup and security at any company are fallible.
1/1/( CHALLENGE OF PERSUADING BOARD MEMBERS ABOUT MIS AND KMS

This can prove to be one of the most difficult challenges. It is not easy persuading stakeholders or board members to adopt a new management information system. The biggest constraint is the cost involved in such a pro3ect. 6ne of the ma3or concerns by board members might be that the cost involved with such a system outweighs the benefits that are generated. The best way for the Metropolitan Hospital to address the challenges would be to design and implement a MS plan and a MIS plan
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MS plan

A knowledge management plan involves an analysis of corporate ob3ectives and a close e/amination of the tools, both traditional and technical that is re.uired for attending to the needs of the company. The challenge is to select an IT infrastructure that fits the conte/t of the overall strategic plan of Metropolitan Hospital. The MS plan basically encompasses the following process&

1athering 2 data entry, ocr and scanning, etc. 6rgani*ing 7 cataloguing, inde/ing, filtering, linking 8efining 7 conte/tuali*ing, collaborating, compacting and data2

mining

9isseminating 2 flow, sharing, alert and push

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MIS plan #audon et el $!"%"& p::') describes the information systems plan as a road map indicating the direction of systems development $the purpose of the plan), the rationale, the current systems0situation, new developments to consider, the management strategy, the implementation plan, and the budget. This plan also describes how the goals of the company can be attained with the support of information technology. The business value of a MS and MIS plan lies in the benefits that can be generated for Metropolitan Hospital. These benefits can be tangible $increased productivity, reduced facility costs, reduced workforce, etc.)
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or intangible $improved asset utili*ation, improved resource control, improved decision making, etc.).

QUESTION 2 Identify and describe the hardware, software, connectivity and security requirements for Milleys fantasy medical institution!. 9ick Milley-s fantasy medical institution 2.1 COMPUTER HARDWARE

The hardware re.uirements for 9r. Milley-s fantasy medical institution depend on the type of database that will be used, for e/ample flat model, hierarchical model, network model and relational model. The relational model is the most popular of the databases, because it is relatively easy to create and access and it has the added advantage of being easy to e/tend.
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After the original database creation, a new data category can be added without re.uiring that all e/isting applications be modified. This database organi*es data in tables. +ach table contains records of closely related data that may be linked through some common characteristic. The relational database has become the standard model for databases made from products such as 2.2 SOFTWARE L!"#u!#e, is a database computer Access or MyS;#.

SQL often referred to as Structured Quer $894MS).

language designed for managing data in relational database management systems

MyS;# is the most popular open source database, because of its high performance, high reliability and ease of use. It is also the database of choice for a new generation of applications built on the #AM< stack $#inu/, Apache, MyS;#, <H< 0 <erl 0 <ython.) Many of the world=s largest and fastest2growing organi*ations including >acebook, 1oogle, Adobe, Alcatel #ucent and ?appos rely on MyS;# to save time and money powering their high2volume @eb sites, business2critical systems and packaged software. It can also run on many operating platforms such as #inu/, @indows, Mac 6S, Solaris, H<2AB, and I4M AIB. 2.$ CONNECTI%ITY

Connectivity is the ability to connect systems, application programs and people of a company into a single integrated network. Computer networks are the main connectivity instrument for passing data in an electronic environment. A network is composed of several computers connected by a wired or wireless medium so data and other resources can pass through for sharing. According to 9ick Milley he wants to be able to access medical information almost anywhere in the hospital. The internet has enabled companies to use internet working standards and web technology to create private networks called intranets and e/tranets.
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The advantage of intranets and e/tranets is that it can create network applications that can run on different types of computers throughout the organi*ation including wireless enabled laptops and smartphones. Security is not a problem because these networks are protected from public visits by firewalls. +/tranets will allow the suppliers and customers limited access to its intranet. Intranets and e/tranets also have a cost benefit, because it reduces operational costs. The following must be considered when using a wired or wireless medium. @ireless connections may not be fast or reliable enough for certain bandwidth2intensive activities for sending or receiving large files. All of the devices connected wirelessly share the appro/imate e.uivalent of an +thernet cable bringing the connection speed considerably down. 2.& SECURITY

Security in a hospital has become a significant concern. The type of network system used in the hospital is very important from a security perspective. Metropolitan hospital should consider a virtual private network for the following reasons.

A virtual private network $D<E) is a network that uses the Internet, to provide remote offices or individual users with secure access to the hospital-s network. D<E-s will provide Metropolitan Hospital with the same competencies, but at a much lower cost.

A D<E is much secured because it works by using the shared public infrastructure while maintaining privacy through security procedures and tunnelling protocols such as the #ayer Two Tunnelling <rotocol $#!T<).

9ata are encrypted at the sending end and decrypted at the receiving end, data is send through a FtunnelF that cannot be FenteredF by data that is not properly encrypted. An additional level of security involves encrypting not only the data, but also the originating and receiving network addresses.

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9atabase security represents the system, processes, and procedures that protect a database from unauthori*ed activity. 94MSs usually impose security through the following&

ACCESS CONTROL 2 manages who can connect to the database through authentication and what they can do through authori*ation.

AUDITING RECORDS 2 information about database activity& who, what, when, and possibly where.

ENCRYPTION 2 protects data at the lowest possible level by storing and possibly transmitting data in an unreadable form. The 94MS encrypts data when it is added to the database and decrypts it when returning .uery results. This process can occur on the client side of a network connection.

QUESTION $ "#plain how the $IMM IS team could use the structured systems development lifecycle %S&'() approach to attain their goal. $.1 SYSTEMS DE%ELOPMENT LIFECYCLE

In order for the TIMM IS of Metropolitan Hospital to attain their goals of integrated medical information system is by means of the structured or predictive systems development lifecycle approach $S9#C). The Systems 9evelopment #ife Cycle $S9#C) or the Systems 9evelopment <rocess is a type of approach used to describe the process for building information systems, intended to develop information systems in a very calculated, structured and systematic way, reiterating each phase of the life cycle.
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According to #audon et el $!"%"& p:%:) this life cycle can be broken down into si/ core activities. >igure % gives a visual representation of the systems development process.

PRODUCTION AND MAINTENANCE

S#STEMS ANAL#SIS

CONVERSION

S#STEMS DEVELOPMEN T PROCESS

S#STEM DESIGN

TESTING

PROGRAMMIN G

F$%&'( 1: A)*+,() -'./ 0.&'1(: (L*&).2 *2) L*&).23 2414: +516)

It must be stressed that although each of the systems development activities are depicted in a se.uential order, some might be repeated or takes place simultaneously. $.1.1 SYSTEM ANALYSIS The TIMM IS team can use system analysis to understand the details of the system proposed by 9ick Milley, such as the IT infrastructure that will be used, which database to use, software, connectivity, etc. A decision on the desirability of the system can then be taken. Therefore, system analysis is a useful tool for the TIMM IS to investigate the proposed system, identify problems, and using the information to implement the system. 4efore any decision can be made the TIMM IS should conduct a feasibility study to determine whether the solution proposed will be feasible from a financial, technical, and organi*ational
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level. $.1.2 SYSTEM DESIGN Systems design is the process of defining the architecture, components, modules, interfaces, and data for a system to satisfy specified re.uirements. It serves as the blueprint for the overall plan or model for the integrated medical information system that will be used by Metropolitan Hospital and how the system will fulfil the ob3ectives of the hospital. The purpose of System 9esign is to create a technical solution that satisfies the operational re.uirements for Metropolitan Hospital-s proposed system. 9uring the system design process certain design specifications are produced for e/ample, system components, system environment, implementation re.uirements and time and cost estimates. The specifications should address all the managerial, organi*ational, and technological components of the chosen system solution. $.1.$ PROGRAMMING This entails the construction of the new integrated management system for Metropolitan Hospital. 9uring this phase system specifications are translated into software program code. It is not necessary for the TIMM IS team to perform this task because software that meets the re.uirements for the hospital-s new system can be purchased from a variety of software retailers. This will save metropolitan Hospital a lot of time and money. The suppliers of prewritten, predesigned and pretested software programs also provide on2going maintenance and enhancements to keep the system in line with changing technical and business developments. 6ther options to consider is outsourcing, an e/ternal organi*ation build or operate the information system, and offshore outsourcing, the organi*ation that will build or operate the information is located in another country. The latter is done purely as a means to cut costs. $.1.& TESTING The software program code is tested at various levels in software testing to determine whether the system will produce the desired results. These tasks are
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performed on a regular basis. This is a grey area as many different opinions e/ist as to what the stages of testing are and how much if any iteration occurs. >ollowing are the types of testing& Anit testing is done to test each program individually5 System testing involves the testing of the system as a whole5 Aser acceptance testing is the final certification that the system is ready to be implemented. $.1.' CON%ERSION This phase refers to the changing form the old system to the new system. The following conversion strategies can be utilised& *A+A''"' S$+A$",o

The old and the new system runs concurrently to ascertain whether the new system functions properly. The advantage of this approach is that it is the safest, because in the event of errors the old system can be used as a backup. However, the biggest drawback of this strategy is that it is very e/pensive to maintain.

&I+"($ (.$/0"+ S$+A$",o

The old information system is replaced entirely with the new system. This is the riskiest of the four strategies because in the event of errors, there is no other system to fall back on. This strategy could prove to be the costliest of them all.

*I'/$ S$.&- A**+/A(H o The new system is introduced to a limited area of the hospital, such as the medical department or finance department. 6nly upon the success of the pilot version will it be installed throughout the hospital. *HAS"& A**+/A(H

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o This strategy introduces the new integrated management system in phases, either by functions or by organi*ational units. o In this approach the organi*ation undergoes a kind of FrollingF conversion in which one subsystem after another is changed over from the old to the new system.
o

As an e/ample, patients records can be installed first, followed by accounts, etc. 6ther functions will come later. Alumni and development came at the end.

The disadvantage can be that it takes a long time to complete the conversion phase, and e/tra development work is needed.

$.1.( PRODUCTION AND MAINTENANCE After the installation and conversion of the new integrated management system, it is said to be in production. 9uring this phase the users and technical specialists continually review the system to determine whether the system will be able to attain the performance re.uirements of Metropolitan Hospital.

The purpose of this phase is to& 6perate, maintain and enhance the system Certify that the system can process sensitive information 9etermine when the system needs to be modernised, replaced or retired. $he $IMM IS team of Metropolitan Hospital must ta1e note of the following with regard to the systems development lifecycle

Systems development rarely works so effortlessly. There is sometimes a need to revisit the previous phases of the S9#C. 9ifficulty of recording re.uirements in a functional way.
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Scheduling and budgeting is challenging especially if Metropolitan Hospital has large S9#C phases.

QUESTION & &.1 E)*+!," -./ TIMM IS c.u+d 0.+1e t-e *r.2+e30 e)*er,e"ced 2 de*!rt3e"t !0 0*ec,4,ed 2 Gr!"tt ," -er *re+,3,"!r ,"1e0t,#!t,.". MEDICAL DEPARTMENT Pr.2+e35 6utput of medical data always generated on paper, whilst medical procedures are done by computeri*ed e.uipment. P.00,2+e 0.+ut,."5 Implementation of the M+9IE>6 $M+9ical IE>6rmation) system that is basically a general purpose computer2based information storage, retrieval, and analysis system. It is created for a time sharing, on2line computer system for the speedy and easy creation, maintenance, and analysis of general data files. The M+9IE>6 system allows for an analysis to be created, a description of the data made, data to be entered and updated into records, and for the data to be displayed or analysed by the investigator without programmer intervention.
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CLAIMS DEPARTMENT5 Pr.2+e35 <atients- personal data are still keyed in manually from charts and coded according to insurance and Medicare specifications. accounting system. P.00,2+e 0.+ut,."5 The purpose of the management information system is to eliminate redundancy. In South Africa the Med+9I system uses +lectronic 9ata Interchange $+9I), which permits healthcare professionals to collect their patient billings now 2 in real time. Claims are not using a @eb based medical claims service agency. The claims system is only connected to the

It has some of the following advantages& 9ramatically reduces calls to medical schemes and simplifying medical scheme claim administration tasks

8educing time spent ,following up- and =chasing debt<roviding an immediate acknowledgment from the medical scheme that they have received the claim from the hospital

+liminating the need for several stand2alone billing applications and +9I $electronic data interchange) systems

It is a very affordable system

ACCOUNTING DEPARTMENT5 Pr.2+e35 Accounting is still <C2based and uses an off2the2shelf medical accounting software package, handling all accounts payable and receivable. The accounting system also maintained a full record of all patient personal data. The networking of the

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accounting and claims departments re.uired changing the types of computers accounting used. P.00,2+e 0.+ut,."5 6ff2The2Shelf medical accounting software might not be sufficient for the accounting needs of the Metropolitan Hospital. There are many accounting software suppliers that provide software that are tailored to the needs of the hospital. The Made To Measure Medical Accounting System is a powerful, fle/ible software package for managing the many aspects of accounts of Metropolitan Hospital. It often means the integration of many different functions involved in patient care& scheduling, billing, maintenance of electronic medical records, accounting, etc.

PURCHASING DEPARTMENT5 Pr.2+e35 The purchasing department had become part of the accounting department about si/ months ago, providing an opportunity for the hospital to utili*e +9I $electronic data interchange), which is the electronic e/change of business information, such as invoices, payments, and order status information. @ith only a handful of suppliers large enough to serve Metropolitan Hospital-s needs, the hospital signed a new contract only every two years. P.00,2+e 0.+ut,."5 The purchasing department should be separated from the accounting department in order for them to function optimally. @eb2based +9I, or web+9I, will allow the hospital to network with its suppliers without the worry of implementing a comple/ +9I infrastructure, such as value2added networks $DAES).

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Asing a friendly web2based interface, +9I transactions can be received, edited and sent as easily as an email. The hospital will also be able to receive +9I documents and send +9I invoices and shipping documents with no software to install. The Internet is making +9I more accessible to all. @eb+9I has the added advantages that it is accessible anywhere in the world and you do not need a dedicated IT person to manage any software installation. FINANCE DEPARTMENT5 Pr.2+e35 The finance department ran a packaged program on the hospital-s mainframe. It tracked revenues and e/penses by type. The finance and accounting departments transferred data files into each other-s systems. P.00,2+e 0.+ut,."05 >irst of all, the finance and accounting department should be merged. Intranet is the general term for a collection of private computer networks within an organi*ation. An intranet uses network technologies as a tool to simplify communication between people or workgroups to improve the data sharing capability and overall knowledge base of an organi*ation=s employees. HUMAN RESOURCES DEPARTMENT Pr.2+e305 <erformance reviews are done online, but none of the medical staff took advantage of that feature. P.00,2+e 0.+ut,."5 It is important that all staff members must be made aware of the advantages of an online performance review system. It is the task of the human resources department to determine the reason for the medical staff not taking advantage of this feature. LEGAL DEPARTMENT5 Pr.2+e305
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The legal department-s staff of three had its own <C client2server network. The server contained all the legal documentation resources, and the department subscribed to an online case database. P.00,2+e 0.+ut,."5 The outsourcing of the legal services department . The true value of outsourcing must be more than 3ust saving the hospital money. The goal should be to provide a solution to the legal needs of the hospital. 6ther than cost savings, outsourcing includes the following advantages&
1/ ;uality& Dendors have e/pert legal employees along with speciali*ed

processes and technology that ensure better .uality of output for the hospital.
2/ >le/ibility& 6utsourcing provides fle/ibility to the hospital as the buyer and can

change a vendor if re.uired.

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&iscuss the additional benefits that each department and the hospital as a whole could e#perience by the implementation of the proposed integrated medical management system.

Additional benefits to the various departments of Metropolitan Hospital are as follows& MEDICAL DEPARTMENT5 The benefits of IMIS are improved medical e/amination and treatment and patient service. #ess staff is re.uired to cater for more patients in the same time or less. Staff can be redeployed to other suitable locations. +nabled improvement in the response time, because it automates the process of collecting, collating and retrieving patient information.

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9octors can spend their precious time more in clinical activities than to put in clerical activities. <rovides an opportunity to enhance patient care. 8ecords of patients can be retrieved simultaneously using IMS. CLAIMS DEPARTMENT5 +asily navigational software interfaces save a lot of time from data entry for special 3obs only. +liminates denials due to lost charges and improves the hospital-s ability to e/plain charges. <rovides immediate access to patient correspondence associated with encounters and receivables resolution.

ACCOUNTING DEPARTMENT5 Accounting can sometimes become very comple/. The integrated medical management system eliminates any such comple/ity. 4etter cash flow and improved accuracy Simultaneous access to information Compliance with legal re.uirements 8esolve matters .uickly and efficiently Conserve time and increase accuracy and accountability within a department PURCHASING DEPARTMENT5 <urchasing department can use it to control costs and streamline the procurement procedures without sacrificing control
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It enables purchasing managers to move away from operational, day2to2day

tasks and instead focus on managing and negotiating stronger supplier contacts, e/amining spend and purchase decisions, to ultimately progress the purchasing function from a cost2 to a profit2centre. 4etter purchasing information with lower overheads FINANCE DEPARTMENT5 @ill enable the hospital to serve the rapidly growing number of health care consumers in a cost2effective manner. +nhanced 8evenue Management DE%ELOPMENT DEPARTMENT5 Increased hospital publicity, means that donations will be much easier to come by.

HUMAN RESOURCES DEPARTMENT5 A much happier workforce because they will not be overwhelmed by multiple cross2references Improved confidentiality Information can be accessed centrally. Authori*ed staff may retrieve any information at any time H8 is relieved of routine tasks re.uested, with user permissible access All personnel documents can be electronically filed and secured for the life of the document ADDITIONAL BENEFITS OF IMMS TO METROPOLITAN HOSPITAL5

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Clearly defined roles and responsibilities for managing the integrated management system 9rastically increase productivity in all departments Highest levels of security protects unauthorised release of protected health information Improves and develops performance Simplifies internal operations Improve administrative efficiency

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