Does Health IT Save Money and Lives? New Evidence from Vendor Heterogeneity
55 Pages Posted: 18 Mar 2019
Date Written: February 25, 2019
We examine how vendor heterogeneity and the timing of adoption affect EMR performance in U.S. hospitals. Although 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 and 30-day mortality varies substantially by vendor. Not all certified EMRs lead to cost savings and/or improved outcomes. Our results suggest that vendor difference matters and offer evidence to help inform the policy debate over government incentive programs for health IT adoption.
Keywords: Health IT, health care expenditure, health care outcome, Medicare
JEL Classification: H51, I11, I13, I18, O33
Suggested Citation: Suggested Citation