The tool will be divided into three core categories (workforce, finance, and material) and likely include applications for payroll and attendance tracking, accounts payable, and supply chain management.

"We are building our [ERP tool] as healthcare focused from the ground up," Howard said. "Most [ERP] systems out there today are built to be industry agnostic. They're used in healthcare, but they're also used in many other industries."

Although Epic's ERP tool is still in the development process, Kevin Cahalane, senior director of provider technology services at Optum Advisory, said that the company is positioning itself to "go head-to-head with other well-established platforms and capitalize on its existing client footprint."

More organizations turn to AI to modernize EHRs

Aside from Epic, other EHR companies, including Oracle and eClinicalWorks, are also investing in AI technology to improve their systems and offer both patients and providers a better experience.

Last October, Oracle announced plans to release a new EHR platform that includes a clinical AI agent, voice-activated navigation, and search capabilities. Currently, the clinical AI agent, which can record and transcribe patient visits and draft notes for clinicians' approval, is available for over 30 medical specialties.

The changes are "nothing short of a complete reinvention of the EHR," said Bharat Sutariya, Oracle's chief health officer. "We are investing massively to ensure we rapidly innovate and get it right at the same time."

Meanwhile, other companies like Meditech and eClinical Works have partnered with technology companies to implement AI tools. Both Meditech and eClinicalWorks have partnered with Microsoft to automate scribing or use machine learning to match patient records. Meditech also plans to add Microsoft's latest clinical assistant to its EHR once the technology rolls out.

EHR companies have also implemented guardrails and risk management strategies to help ensure quality and privacy from their AI tools while also reducing the risk of bias or incorrect information.

For example, Rachel Wilkes, Meditech's corporate lead for generative AI initiatives, said that a human should always be involved when it comes to generative AI products and ambient documentation. The company also includes disclaimer language on any records created by AI and is working to add more formal citations to clarify what information is AI-generated and where the model pulls its data from.

In general, hospitals and other healthcare organizations are rapidly implementing AI in their current systems and work processes. According to a HIMSS survey conducted last fall, 86% of respondents said they already use AI technology in their organizations. Currently, AI is primarily used for administrative tasks, but there is growing interest in using it for more clinical purposes.

"Our customers are very warm to it. More warm over the past 12 months," Wilkes said. "We've gone from doing a lot of education about the impact, to — now the question we’re getting is, 'When? When can I get it? How much is it going to cost? What's the plan?'."

However, this move to embrace AI is "not just being done because modern is new and it's good," said Girish Navani, CEO of eClinicalWorks. "It's got a clear efficiency benefit written all over it. That's driving the change."

According to Chouinard, implementing a new EHR requires some form of clinical transformation, but CIOs and their IT teams will also be a critical component of any implementation or conversion programs.

"IT usually provides the program management disciplines required to drive toward predictable outcomes: governance structure, program management, technology implementation life cycle, vendor management, etc.—all capabilities that are core to EHR implementations," Chouinard said.

*Advisory Board is a subsidiary of Optum. All Advisory Board research, expert perspectives, and recommendations remain independent.