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BMC Health Services Research
Published in: BMC Health Services Research 1/2016

Open Access 01-12-2016 | Research article

Texas hospitals with higher health information technology expenditures have higher revenue: A longitudinal data analysis using a generalized estimating equation model

Authors: Jinhyung Lee, Jae-Young Choi

Published in: BMC Health Services Research | Issue 1/2016

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Abstract

Background

The benefits of health information technology (IT) adoption have been reported in the literature, but whether health IT investment increases revenue generation remains an important research question.

Methods

Texas hospital data obtained from the American Hospital Association (AHA) for 2007–2010 were used to investigate the association of health IT expenses and hospital revenue. The generalized estimation equation (GEE) with an independent error component was used to model the data controlling for cluster error within hospitals.

Results

We found that health IT expenses were significantly and positively associated with hospital revenue. Our model predicted that a 100 % increase in health IT expenditure would result in an 8 % increase in total revenue. The effect of health IT was more associated with gross outpatient revenue than gross inpatient revenue.

Conclusion

Increased health IT expenses were associated with greater hospital revenue. Future research needs to confirm our findings with a national sample of hospitals.
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Metadata
Title
Texas hospitals with higher health information technology expenditures have higher revenue: A longitudinal data analysis using a generalized estimating equation model
Authors
Jinhyung Lee
Jae-Young Choi
Publication date
01-12-2016
Publisher
BioMed Central
Published in
BMC Health Services Research / Issue 1/2016
Electronic ISSN: 1472-6963
DOI
https://doi.org/10.1186/s12913-016-1367-9

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