TY - JOUR
T1 - Is health information technology investment related to the financial performance of US hospitals? An exploratory analysis
AU - Parente, Stephen T.
AU - Dunbar, Jennifer L.
PY - 2001
Y1 - 2001
N2 - 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.
AB - 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.
KW - Information technology
KW - capital investment
KW - financial performance
KW - hospital
KW - information systems
KW - total and operating margin
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U2 - 10.1504/IJHTM.2001.001104
DO - 10.1504/IJHTM.2001.001104
M3 - Article
AN - SCOPUS:0347162173
SN - 1368-2156
VL - 3
SP - 48
EP - 58
JO - International Journal of Healthcare Technology and Management
JF - International Journal of Healthcare Technology and Management
IS - 1
ER -