Title: Information system integration and technical efficiency in urban hospitals

Authors: Kwangsoo Lee, Thomas T.H. Wan

Addresses: Health Insurance Review Agency, 168-9, Yomri-Dong, Mapo-Gu, Seoul, 121-749, Korea. ' Professor of Public Affairs Doctoral Program College of Health and Public Affairs University of Central Florida Box 162200, Orlando, FL 32816-2200, USA

Abstract: This study aims to explain the relationship between information system (IS) integration and hospital efficiency, measured in two years, 1997 and 1998. The study used 349 urban hospitals in the analysis. The hospitals| IS integration strategy was measured by multiple indicators of the software system applications and IS resources used in 1997. Hospital performance was measured by the levels of efficiency, using technical efficiency scores computed by Data Envelopment Analysis (DEA) for 1997 and 1998. The DEA analysis shows that, among the urban hospitals studied, the number of efficient hospitals increased during the period 1997-1998. It was found that information system integration is statistically significantly associated with the DEA technical efficiency scores in 1997 and 1998. However, system integration is negatively associated with the 1997 efficiency score and changed to a positive direction in 1998. Hospitals that deployed a highly integrated IS strategy did not show an immediate benefit. However, the IS integration strategy enhanced hospitals| technical efficiency in the next year.

Keywords: system integration strategy; efficiency; DEA; technology impact; information integration; healthcare.

DOI: 10.1504/IJHTM.2003.004245

International Journal of Healthcare Technology and Management, 2003 Vol.5 No.6, pp.452 - 462

Published online: 10 May 2004 *

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