Hospital Information Technology Adoption and Market Structure

Posted: 16 Jun 2007

See all articles by Alison Cuellar

Alison Cuellar

Columbia University - Department of Health Policy and Management

Cory S. Capps

Bates White, LLC

Abstract

Abstract: In this paper, we estimate a model of information technology (IT) adoption in the hospital industry. Our model allows the returns to adoption to vary according to market conditions as well as hospital and technology characteristics. Key IT characteristics include the systemic versus autonomous nature of the technology, i.e., whether they require cooperation from adjacent parts of the industry value chain for successful implementation. In addition, we distinguish among technologies that lowers costs or affect demand through product differentiation. Hospitals' ability to implement these technologies likely varies with firm-specific factors, such as size, common ownership of multiple hospitals, or vertical integration with physicians. Because economic theory generates ambiguous predictions about the impact of firm and market structure on technology adoption, we examine these relationships empirically.

Keywords: hospital competition, quality, information technology

JEL Classification: I11, L41

Suggested Citation

Evans Cuellar, Alison and Capps, Cory S., Hospital Information Technology Adoption and Market Structure. iHEA 2007 6th World Congress: Explorations in Health Economics Paper, Available at SSRN: https://ssrn.com/abstract=994287

Alison Evans Cuellar (Contact Author)

Columbia University - Department of Health Policy and Management ( email )

600 West 168th Street, 6th Floor
New York, NY 10032
United States

Cory S. Capps

Bates White, LLC ( email )

2001 K St., NW
Suite 700
Washington, DC 20006
United States
202.216.1151 (Phone)
202.408.7838 (Fax)

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