Abstract

This research is motivated by the large investment in health information technology (IT) and inconsistent findings on the effects of health IT adoption on hospital performance. Building on resource orchestration theory and the information systems literature, we develop a research model to investigate how the configuration strategies in sharing information under health IT system affect hospital efficiency. We test our hypotheses using data from the 2010 annual and IT surveys of the American Hospital Association (AHA), Centers for Medicare and Medicaid Services (CMS) case mix index, and Census small area income and poverty estimates. We find that in health IT systems, breadth and depth of information sharing (breadth being defined as the extent to which, and depth the level of detail at which, digital information is shared among stakeholders) each has a curvilinear relationship with hospital efficiency. Also, they reinforce each other’s positive effects and attenuate each other’s negative effects, and that their balance has a positive effect on hospital efficiency. The results of this research have the potential to enrich the literature on the value of adopting, and provide practitioner guidelines for meaningful use of, health IT systems.

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