Oracle Customer Success—King Abdullah Medical City

King Abdullah Medical City Transforms Financial, Human Resources, and Supply Chain Operations for Better Patient Care

King Abdullah Medical City suffered from siloed solutions, and our departments had issues with data integrity and consistency. With Oracle E-Business Suite 12.2.4, we integrated financial, human resources, and logistics processes—enabling hospital staff to fully focus on patients and high quality healthcare services.

— Eng. Mohsen Ba-Abdullah, CIO, King Abdullah Medical City

King Abdullah Medical City (KAMC) is a medical complex covering 800,000 square meters in Saudi Arabia’s Holy City of Makkah (Mecca), with an additional site in Jeddah.

KAMC operates as an autonomous program and is a state-of-the-art quaternary healthcare system owned by Saudi Arabia’s Ministry of Health. The program incorporates the current 500 bed Specialist Hospital in Mecca, 50 bed oncology satellite center in Jeddah, and a future 1,000 bed state-of-the art modern medical complex in Shumaisi. The specialist hospital contains centers of excellence for oncology; non-invasive surgeries; neurosciences; cardiology; rehabilitation; eye and ENT (ear, nose and throat); and radiology, diagnostic, and therapeutic technologies. The specialist hospital also includes an advanced medical laboratory in addition to medical, nursing, and allied medical education and training facilities.

Since 2013 KAMC has undertaken significant initiatives towards the development of an innovative information and communication technology (ICT) strategy. This generated a major restructuring within the organization, and the implementation of a five-year roadmap consisting of 40 initiatives, of which 16 have already been completed and 12 are currently in progress.

KAMC healthcare services are innovative and progressive with remote access to digital imaging and lab testing, electronic medical records, MRI and CT capabilities, and tele-medicine, tele-radiology, and tele-education services.

Business Challenge

Improve efficiency and decision-making across accounting, invoicing, procurement, medical inventory, and human resources (HR), by replacing heterogeneous applications with a unified enterprise resource planning (ERP) system at a lower total cost of ownership (TCO)
Enhance the delivery of healthcare services by retaining a strong, capable, and motivated workforce; increase employee satisfaction with optimal management of shifts and working hours; and raise staff productivity through effective self-services

Ensure optimum inventory levels to avoid business disruption due to missing medical supplies and excessive costs due to overstocking and the subsequent destruction of goods that have expired
Enable KAMC to meet financial reporting requirements—imposed by the Ministry of Finance and Ministry of Health—and follow best business practices by applying accrual accounting and showing debts as soon as they occur, for example when ordering medical supplies

Maximized the time that medical staff spends on patient care by introducing more than 40 HR services—such as personal information updates, vacation requests, passport renewal, or benefit packages—slashing the time employees spend on administrative processes by 95%
Optimized 24/7 patient care with streamlined rotation of physicians, clinical specialists, and nurses while keeping medical staff productive and motivated by allowing them to easily modify their working schedules

Achieved the first public sector ERP deployment in a private cloud environment and pioneered the government’s strategy to raise the technological level of the country’s public sector systems
Improved employee satisfaction by implementing HR self-service forms, eliminating the need for in-person HR requests and allowing nurses and physicians to leave the premises following a long shift Removed bottlenecks from critical business processes and increased business performance by replacing financial and supply chain management applications with Oracle E-Business Suite 12.2.4— reducing the time to fulfill a request for medical supplies by a factor of 10
Ensured that medical departments are accurately stocked with medical supplies by centralizing procurement planning throughout KAMC with Oracle Purchasing— avoiding both shortages that could impact the hospital’s operational capabilities, as well as excesses where expired medical supplies need to be destroyed
Used Oracle Inventory Management to permanently track inventory levels of medical supplies and establish precise delivery dates for replenishment orders— ensuring that KAMC never runs out of medical supplies and that patients receive medication or treatment at the right time
Ensured compliance with government regulations while following best business practices by implementing both cash- and accrual-based ledgers with the same chart of accounts structure—recording an obligation when an order is placed, an expenditure when medical supplies are delivered, a disbursement when order payment is issued, and an expense when supplies are used
Provided buyers with visibility into past purchases and negotiations to help them better understand market prices and improve negotiations with suppliers—achieving lower procurement rates and important savings on medical supplies and services
Maximized the value of Oracle E-Business Suite investment while optimizing deployment time by running the suite on Oracle Exadata and Oracle Exalogic— leveraging an optimal out-of-the-box combination of server, storage, and networking components
Reduced TCO of KAMC’s IT landscape and saved significant time on server, storage, middleware, and application configurations

We knew Oracle solutions would optimize KAMC’s business operations as these solutions are widely implemented across Saudi government entities. Oracle E-Business Suite on Oracle’s engineered systems gives us in-depth operational visibility throughout KAMC. As a result, KAMC focuses less on administration and more on patient care.

— Eng. Mohsen Ba-Abdullah, CIO, King Abdullah Medical City

Execution

Before the implementation, KAMC had siloed data solutions that compromised data integrity and consistency. KAMC established an extensive management change plan to align HR, procurement, and financial processes with the objectives of the organization. Commitment from senior management and active participation of key staff helped create a continual-improvement culture and led to the successful go-live of Oracle E-Business Suite 12.2.4. Ongoing post-implementation training was provided to clinical staff to help them transition to self-service processes and focus their efforts on improved patient care. The HR department had its own proprietary legacy system that was unable to integrate with any other system. Meanwhile, finance and procurement systems were entirely manual, with an old inventory system that was incapable of handling KAMC’s needs.

“KAMC envisions becoming Saudi Arabia’s healthcare beacon by 2030, and state-of-the-art information technology is central to this goal. We now have a much clearer technology roadmap to improve KAMC’s capabilities, including expanding our Oracle ERP footprint and introducing Oracle Business Intelligence,” Ba-Abdullah said.

About King Abdullah Medical City

Headquarters

Mecca, Saudi Arabia

Employees

2,000

King Abdullah Medical City

Partners

KAMC worked with Oracle Platinum Partner Raya International Services, a company that specializes in Oracle technology implementations, software development, and IT training services across the Middle East.

“Raya has a lot of experience in deploying Oracle ERP in the region. We received excellent references, and we were confident from the beginning. Raya’s broad understanding of the healthcare industry also added a lot of value throughout the project,” Ba-Abdullah said.