Paper Number
ICIS2025-2072
Paper Type
Complete
Abstract
Alternative payment models (APMs) have emerged as a key strategy for improving care quality while ensuring financial sustainability in the U.S. This paper examines how two organizational capabilities—managerial ability (MA) and information integration capability (IIC)—jointly influence hospital APM adoption and operating margin. Grounded in the resource-based view and dynamic capability theory, we hypothesize that hospital-level MA, IIC, and their interaction positively affect both outcomes. Using a panel dataset of over 18,000 hospital-year observations from 1,904 U.S. hospitals, we find that MA and IIC each have a positive effect on operating margins, and that their interaction has a complementary effect on both outcomes. Further analysis reveals that MA and IIC have distinct effects on the adoption of APMs with different levels of financial risk. These findings offer important policy and managerial implications, highlighting how hospitals can strategically leverage managerial and IT capabilities to adapt to the evolving healthcare landscape.
Recommended Citation
Guo, Tianjian; Bardhan, Indranil; and Wen, Wen, "Impact of Information Integration on Hospital Performance: The Role of Managerial Ability" (2025). ICIS 2025 Proceedings. 12.
https://aisel.aisnet.org/icis2025/is_health/ishealthcare/12
Impact of Information Integration on Hospital Performance: The Role of Managerial Ability
Alternative payment models (APMs) have emerged as a key strategy for improving care quality while ensuring financial sustainability in the U.S. This paper examines how two organizational capabilities—managerial ability (MA) and information integration capability (IIC)—jointly influence hospital APM adoption and operating margin. Grounded in the resource-based view and dynamic capability theory, we hypothesize that hospital-level MA, IIC, and their interaction positively affect both outcomes. Using a panel dataset of over 18,000 hospital-year observations from 1,904 U.S. hospitals, we find that MA and IIC each have a positive effect on operating margins, and that their interaction has a complementary effect on both outcomes. Further analysis reveals that MA and IIC have distinct effects on the adoption of APMs with different levels of financial risk. These findings offer important policy and managerial implications, highlighting how hospitals can strategically leverage managerial and IT capabilities to adapt to the evolving healthcare landscape.
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21-Healthcare