Electronic Discovery and the Adoption of Information Technology

Abstract

After firms adopt electronic information and communication technologies, their decision-making leaves a trail of electronic information that may be more extensive and accessible than a paper trail. We ask how the threat of litigation affects decisions to adopt technologies that leave more of an electronic trail, by exploring the case of electronic medical records (EMRs). EMRs allow hospitals to document electronically both patient symptoms and health providers' reactions to those symptoms. We find evidence that hospitals are one-third less likely to adopt EMRs if there are state rules that facilitate the use of electronic records in court.

Keywords: healthcare IT, electronic discovery, technology adoption, medical malpractice

JEL Classification: I12, I18, K13, O33