The Impact of Healthcare it on Clinical Quality, Productivity and Workers

40 Pages Posted: 6 Sep 2021 Last revised: 2 May 2022

See all articles by Ari Bronsoler

Ari Bronsoler

Massachusetts Institute of Technology (MIT)

Joseph J. Doyle

Massachusetts Institute of Technology (MIT) - Economics, Finance, Accounting (EFA); National Bureau of Economic Research (NBER)

John Van Reenen

London School of Economics - Centre for Economic Performance (CEP); Stanford Graduate School of Business; Institute for Fiscal Studies (IFS); Centre for Economic Policy Research (CEPR)

Date Written: September 2021

Abstract

Adoption of health information and communication technologies (“HICT”) has surged over the past two decades. We survey the medical and economic literature on HICT adoption and its impact on clinical outcomes, productivity and labor. We find that HICT improves clinical outcomes and lowers healthcare costs, but (i) the effects are modest so far, (ii) it takes time for these effects to materialize, and (iii) there is much variation in the impact. More evidence on the causal effects of HICT on productivity is needed to guide further adoption. There is little econometric work directly investigating the impact of HICT on labor, but what there is suggests no substantial negative effects on employment and earnings. Overall, while healthcare is “exceptional” in many ways, we are struck by the similarities to the wider findings on ICT and productivity stressing the importance of complementary factors (e.g. management and skills) in determining HICT impacts.

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Suggested Citation

Bronsoler, Ari and Doyle, Joseph John and Van Reenen, John Michael and Van Reenen, John Michael, The Impact of Healthcare it on Clinical Quality, Productivity and Workers (September 2021). NBER Working Paper No. w29218, Available at SSRN: https://ssrn.com/abstract=3918113

Ari Bronsoler (Contact Author)

Massachusetts Institute of Technology (MIT)

Joseph John Doyle

Massachusetts Institute of Technology (MIT) - Economics, Finance, Accounting (EFA) ( email )

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John Michael Van Reenen

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