To Coordinate with or Differentiate From Your Neighbor: The Adoption of Electronic Medical Records by Hospital Systems

39 Pages Posted: 18 Jun 2018 Last revised: 28 Feb 2019

See all articles by Jianjing Lin

Jianjing Lin

Rensselaer Polytechnic Institute (RPI) - Department of Economics

Date Written: February 2, 2019

Abstract

Billions of dollars have been invested in health information technology (IT), but the seamless transfer of health information remains out of reach. This paper seeks to understand the incentives of affiliated hospitals in choosing health IT vendors. Particularly, their decision is characterized by the tradeoff between the local market-leading vendor and the choice of the parent system, when they are different. I develop a discrete-choice model to evaluate the effect of each factor. Using a nationwide sample of affiliated hospitals from 2006 to 2010, I find that the system-dominant vendor is much more desirable than the vendor that leads the local market. With potential endogeneity addressed, the impact from choosing the market-leading vendor becomes even negative. The results suggest that large hospital systems value integration to a much greater extent and may tend to deviate from the local market, which could create barriers to building an interoperable health care system.

Keywords: Electronic Medical Records, technology adoption, compatibility, coordination, competition, strategic behavior

JEL Classification: I11, I18, L13, L15, O33

Suggested Citation

Lin, Jianjing, To Coordinate with or Differentiate From Your Neighbor: The Adoption of Electronic Medical Records by Hospital Systems (February 2, 2019). Available at SSRN: https://ssrn.com/abstract=3189469 or http://dx.doi.org/10.2139/ssrn.3189469

Jianjing Lin (Contact Author)

Rensselaer Polytechnic Institute (RPI) - Department of Economics ( email )

Troy, NY 12180
United States
5182762016 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
24
Abstract Views
218
PlumX Metrics