Does Health IT Save Money and Lives? New Evidence from Vendor Heterogeneity

64 Pages Posted: 18 Mar 2019 Last revised: 22 Jun 2019

See all articles by Jianjing Lin

Jianjing Lin

Rensselaer Polytechnic Institute (RPI) - Department of Economics

Mary K. Olson

Tulane University

Date Written: February 25, 2019

Abstract

We examine how vendor heterogeneity and the timing of adoption affect EMR performance in U.S. hospitals. Although the government has invested billions to incentivize health information technology, there is little evidence showing that it is producing the anticipated effects. Based on a national sample and an IV approach, we find that the impact of EMR adoption on Medicare payments, various hospital charges, 30-day mortality, and adverse drug events varies substantially by vendor. Not all certified EMRs lead to cost savings and/or improved outcomes. Our results suggest that vendor differences matter and offer evidence to help inform the policy debate over government incentive programs for health IT adoption.

Keywords: Health IT, healthcare cost, patient outcome, Medicare

JEL Classification: H51, I11, I13, I18, O33

Suggested Citation

Lin, Jianjing and Olson, Mary K., Does Health IT Save Money and Lives? New Evidence from Vendor Heterogeneity (February 25, 2019). Available at SSRN: https://ssrn.com/abstract=3341796 or http://dx.doi.org/10.2139/ssrn.3341796

Jianjing Lin (Contact Author)

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

Troy, NY 12180
United States
5182762016 (Phone)

Mary K. Olson

Tulane University ( email )

Department of Economics
306 Tilton Hall
New Orleans, LA 70118
United States
504 862-8342 (Phone)
504 865-5869 (Fax)

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