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Is health information technology investment related to the financial performance of US hospitals? An exploratory analysis
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2001
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Information Systems LieBusiness IntelligenceBusiness AnalyticsExploratory AnalysisHospital MedicineInformation ServiceInformation Technology ManagementDigital HealthManagementPublic HealthHealth Services ResearchInformation System PlanningHealth PolicyAccountingHealth InsuranceHealth Information SystemInformation ManagementEconomic EvaluationHealthcare ValueUs HospitalsOrganised Delivery SystemsHealth Information TechnologyHealth EconomicsMedical Information SystemBusinessFinancial PerformanceHealth Care Cost
Information systems lie at the centre of organised 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.