The Trillion Dollar Conundrum: Complementarities and Health Information Technology
We examine the relationship between the adoption of EMR and hospital operating costs. We first identify a puzzle that has been seen in prior studies: Adoption of EMR is associated with a slight cost increase. We draw on the literature on IT and productivity to demonstrate that the average effect masks important differences across time, locations, and hospitals. We find: (1) EMR adoption is initially associated with higher costs; (2) At hospitals with access to complementary inputs, EMR adoption leads to a cost decrease after three years; (3) Hospitals in unfavorable conditions experience increased costs even after six years.
You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.
A data appendix is available at http://www.nber.org/data-appendix/w18281
This paper was revised on December 17, 2012
Document Object Identifier (DOI): 10.3386/w18281
Users who downloaded this paper also downloaded these: