The cost of healthcare in the United States is rising at a rate much above the inflation rate. Healthcare providers, businesspeople, politicians, consumers, and other stakeholders are all looking for ways to at least slow the rise of healthcare cost and, preferably, actually reduce it. Organizations in other industries have used information technology (IT) to help reduce the cost of their operations. The stakeholders in the healthcare industry have taken note of the effects of IT in the organizations in other industries and have advocated a move to more IT investment in the healthcare industry. This study examines some early IT investments by single hospital systems to determine if integrated IT applications help reduce cost relative to other hospitals that have not made such investments. The findings from this study are encouraging as IT seems to reduce total operational costs in adopting hospitals.