Does Health it Adoption Lead to Better Information or Worse Incentives?

55 Pages Posted: 5 Dec 2016 Last revised: 21 Dec 2016

See all articles by Gautam Gowrisankaran

Gautam Gowrisankaran

University of Arizona - Eller College of Management; National Bureau of Economic Research (NBER)

Keith A. Joiner

University of Arizona - College of Medicine

Jianjing Lin

Tulane University

Date Written: December 2016

Abstract

We evaluate whether hospital adoption of electronic medical records (EMRs) leads to increases in billing where financial gains are large or where hassle costs of complete coding are low. The 2007 Medicare payment reform varied both financial incentives and hassle costs of coding. We find no significant impact of financial incentives on billing levels, inconsistent with bill inflation. However, the reform led to increases in reported severity for medical relative to surgical patients at EMR hospitals, consistent with EMRs decreasing coding costs for medical patients. Greater post-reform completeness of coding with EMRs may increase Medicare costs by $689.6 million annually.

Suggested Citation

Gowrisankaran, Gautam and Joiner, Keith A. and Lin, Jianjing, Does Health it Adoption Lead to Better Information or Worse Incentives? (December 2016). NBER Working Paper No. w22873, Available at SSRN: https://ssrn.com/abstract=2880312

Gautam Gowrisankaran (Contact Author)

University of Arizona - Eller College of Management ( email )

McClelland Hall
P.O. Box 210108
Tucson, AZ 85721-0108
United States

HOME PAGE: http://econ.arizona.edu/faculty/gowrisankaran.asp

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Keith A. Joiner

University of Arizona - College of Medicine ( email )

Department of History
Tucson, AZ 85721
United States

Jianjing Lin

Tulane University ( email )

6823 St Charles Ave
New Orleans, LA 70118
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1
Abstract Views
260
PlumX Metrics