Healthcare Finance Modernization with SAP S/4HANA: Transparency, Compliance, and Fraud Prevention

Abstract

Healthcare finance is under increasing strain from rising costs, regulatory scrutiny, and fraud risks. Legacy ERP systems such as SAP ECC have reached the limits of their ability to support transparency, auditability, and compliance in an industry where billions of dollars flow daily between payers, providers, governments, and patients. With the shift toward digital healthcare ecosystems, a modern financial backbone is required to safeguard trust and efficiency. This paper examines how SAP S/4HANA, the next-generation digital core, enables transparency in financial operations, compliance with healthcare regulations, and fraud prevention through intelligent automation. By analyzing industry cases, academic literature, and regulatory frameworks, the paper demonstrates that S/4HANA is not merely a technical upgrade but a strategic enabler of trustworthy healthcare finance. It concludes by identifying future research directions, particularly in AI, sustainability reporting, and post-quantum security for healthcare ERP systems.