Is health information technology investment related to the financial performance of US hospitals? An exploratory analysis

Stephen T. Parente, Jennifer L. Dunbar

Research output: Contribution to journalArticlepeer-review

13 Scopus citations

Abstract

Information systems lie at the centre of organized delivery systems, providing opportunities to improve access, outcomes, and quality benefiting consumers, providers, insurers, and purchasers. However, it is unknown whether hospital financial performance improves after investment in these systems. Our study finds that hospitals with integrated information systems had a 1.7% higher total margin and a 1.0% higher operating margin in 1993 than hospitals without integrated information systems. This greater profitability persisted between 1993-1996, with an average 0.87% greater total margin among hospitals with integrated information systems than without. Our analysis suggests that investments by US hospitals in integrated information systems contributes to improved financial performance and offers subjects for future research.

Original languageEnglish (US)
Pages (from-to)48-58
Number of pages11
JournalInternational Journal of Healthcare Technology and Management
Volume3
Issue number1
DOIs
StatePublished - 2001

Keywords

  • Information technology
  • capital investment
  • financial performance
  • hospital
  • information systems
  • total and operating margin

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