Impact of IT Investment on Hospital Performance: A Longitudinal Data Analysis

Abstract

With the enormous investments in Information Technology (IT), the question of payoffs from IT has become increasingly important. In this study, we investigate the impact of IT investments on hospital performance. We consider both financial outcomes such as return of investment and non-financial outcomes such as quality of care. We used longitudinal data that include the IT investments and hospital performance measures collected from over 500 hospitals and conduct a panel data analysis. The results of our study provide evidence for a significant positive relationship between IT investments and hospital performance measures.