Network Contagion vs. Spatial Contagion: The Diffusion of EHR Incentive Programs in Physician Networks

Abstract

The present study supported the network contagion theory that healthcare providers are more likely to adopt the Medicare and Medicaid Electronic Health Record (EHR) incentive program when their direct relations have more prior adopters. Spatial contagion, however, exhibits an opposite finding that healthcare providers geographically surrounded by more prior adopters are less likely to adopt the EHR incentive program. When taking both network contagion and spatial contagion into account, healthcare providers connected with more prior adopters within 30 miles are more likely to adopt the EHR incentive program. The findings enrich our understanding of how network contagion influences the diffusion of EHR incentive programs and how spatial contagion moderates the effects of network contagion on the diffusion of the EHR incentive programs.