Do Health Information Exchanges Deter Repetition of Medical Services?

26 Pages Posted: 22 May 2017  

Saeede Eftekhari

State University of New York (SUNY) - Management Science and Systems

Niam Yaraghi

Brookings Institution

Ranjit Singh

SUNY at Buffalo - School of Management

Ram D. Gopal

University of Connecticut - Department of Operations & Information Management

Ram Ramesh

State University of New York (SUNY) - Management Science and Systems

Date Written: May 20, 2017

Abstract

Repetition of medical services by providers is one of the major sources of healthcare costs. The lack of access to previous medical information on a patient at the point of care often leads a physician to perform medical procedures that have already been done. Multiple healthcare initiatives and legislations at both federal and state levels have mandated Health Information Exchange (HIE) systems to address this problem. This study aims to assess the extent to which HIE could reduce these repetitions, using data from Centers for Medicare & Medicaid Services (CMS) and a regional HIE organization. A 2SLS model is developed to predict the impact of HIE on repetitions of two classes of procedures: diagnostic and therapeutic. The first stage is a predictive analytic model that estimates the duration of tenure of each HIE member-practice. Based on these estimates, the second stage predicts the effect of providers’ HIE tenure on their repetition of medical services. The model incorporates moderating effects of a federal quality assurance program and the complexity of medical procedures with a set of control variables. Our analyses show that a practice’s tenure with HIE significantly lowers the repetition of therapeutic medical procedures, while diagnostic procedures are not impacted. The medical reasons for the effects observed in each class of procedures are discussed. The results will inform healthcare policy makers and provide insights on the business models of HIE platforms.

Suggested Citation

Eftekhari, Saeede and Yaraghi, Niam and Singh, Ranjit and Gopal, Ram D. and Ramesh, Ram, Do Health Information Exchanges Deter Repetition of Medical Services? (May 20, 2017). Available at SSRN: https://ssrn.com/abstract=2971503

Saeede Eftekhari (Contact Author)

State University of New York (SUNY) - Management Science and Systems ( email )

United States

Niam Yaraghi

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

Ranjit Singh

SUNY at Buffalo - School of Management ( email )

Jacobs Management Center
Buffalo, NY 14222
United States

Ram D. Gopal

University of Connecticut - Department of Operations & Information Management ( email )

368 Fairfield Road
Storrs, CT 06269-2041
United States

Ram Ramesh

State University of New York (SUNY) - Management Science and Systems ( email )

Buffalo, NY 14222
United States
716-645-3258 (Phone)

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