Based on what you know at this point, is it likely that you will recommend a transaction processing system, a business support system, or a user productivity system? What about an ERP system? Explain your reasons.

What will be an ideal response?

The clinic could utilize a transaction processing system to track each charge, payment, and insurance claim. This system would reduce administrative costs, speed up insurance reimbursement, and provide controls and reports. A business support system could be used to analyze provider workloads, turnaround time for claims and payments, and forecast future staffing needs. A user productivity system would increase office efficiency and improve patient satisfaction.

New Century must develop computerized information systems for all critical operations as soon as possible. The first step is to identify New Century’s current procedures, which are typical of many small- and medium-size companies. These include managing customer (patient) records, accounts receivable (patient and insurance billing), accounts payable; scheduling production or services; and handling inventory, payroll, and human resources.

Because New Century deals with many insurance companies, there probably are opportunities to exchange claim information and payment status using EDI. Also, New Century can consider vertical and horizontal packages that would support the clinic’s information management needs. The following table shows some possible systems that might be considered, along with potential benefits.