The Impact of Information Technology across Small, Medium, and Large Hospitals

Abstract

Hospitals invest in Information Technology to lower costs and to improve quality of care. However, it is unclear whether these expectations for Information Technology are being met. This study explores Information Technology (IT) in a hospital environment and investigates its relationship to mortality, patient safety, and financial performance across small, medium, and large hospitals. Breaking down IT into functional, technical, and integration components permits the assessment of different types of technologies’ impact on financial and operational outcomes. Findings indicate that both IT sophistication (access to IT applications) and IT sophistication’s relationship to hospital performance varies significantly between small, medium, and large hospitals. In addition, empirical investigation of quality, safety, and financial performance outcomes demonstrates that the observed impact of IT is contingent upon the category of IT employed.