An Analysis of the Adoption of Digital Health Records under Switching Costs

44 Pages Posted: 10 Feb 2009 Last revised: 18 Oct 2013

See all articles by Zafer D. Ozdemir

Zafer D. Ozdemir

Miami University - Farmer School of Business

Subhajyoti Bandyopadhyay

University of Florida - Warrington College of Business Administration

John Barron

Purdue University - Department of Economics

Date Written: January 19, 2010

Abstract

We investigate the implications of a personal health record (PHR) platform on the adoption and sharing of electronic health records (EHR). Through our analysis, we find evidence that health care providers may not have an incentive to share patients’ records electronically even though EHR systems will increase consumer surplus. In this context, independent PHR platforms, by selectively subsidizing the health care providers, can create incentives for the providers to share their patients’ records electronically with other providers. In a pluralistic health care system like that which exists in the United States, where health care providers have varying incentives to implement electronic health records, an online PHR platform can provide a proxy for a ‘national health information network’ wherein consumers can freely exchange their health records among competing providers.

Keywords: electronic health records, personal health records, national health information network, technology adoption

JEL Classification: I1, I10, D23

Suggested Citation

Ozdemir, Zafer D. and Bandyopadhyay, Subhajyoti and Barron, John M., An Analysis of the Adoption of Digital Health Records under Switching Costs (January 19, 2010). Available at SSRN: https://ssrn.com/abstract=1339331 or http://dx.doi.org/10.2139/ssrn.1339331

Zafer D. Ozdemir (Contact Author)

Miami University - Farmer School of Business ( email )

Oxford, OH 45056
United States

Subhajyoti Bandyopadhyay

University of Florida - Warrington College of Business Administration ( email )

Gainesville, FL 32611
United States

John M. Barron

Purdue University - Department of Economics ( email )

West Lafayette, IN 47907-1310
United States
765-494-4451 (Phone)
765-494-9658 (Fax)

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