Skip to main page content
U.S. flag

An official website of the United States government

Dot gov

The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
Review
. 2016 Apr 5:16:117.
doi: 10.1186/s12913-016-1367-9.

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

Jinhyung Lee  1 , Jae-Young Choi  2
Affiliations
Review

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

Jinhyung Lee et al. BMC Health Serv Res. .

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.

Keywords: Clustering error; Generalized estimation equation; Health IT expenses; Hospital revenue.

PubMed Disclaimer

Figures

Fig. 1
Fig. 1
Health IT expenditure per year Trend from 2007 to 2010 (Unit: Hospital)
See this image and copyright information in PMC

Similar articles

See all similar articles

Cited by

See all "Cited by" articles

References

    1. Payne TH, Bates DW, Berner ES, Bernstam EV, Covvey HD, Frisse ME, Graf T, Greenes RA, Hoffer EP, Kuperman G, et al. Healthcare information technology and economics. J Am Med Inform Assoc. 2013;20(2):212–7. doi: 10.1136/amiajnl-2012-000821. - DOI - PMC - PubMed
    1. Bassi J, Lau F. Measuring value for money: a scoping review on economic evaluation of health information systems. J Am Med Inform Assoc. 2013;20(4):792–801. doi: 10.1136/amiajnl-2012-001422. - DOI - PMC - PubMed
    1. O’Reilly D, Tarride JE, Goeree R, Lokker C, McKibbon KA. The economics of health information technology in medication management: a systematic review of economic evaluations. J Am Med Inform Assoc. 2012;19(3):423–38. doi: 10.1136/amiajnl-2011-000310. - DOI - PMC - PubMed
    1. Eslami S, Abu-Hanna A, de Keizer NF. Evaluation of outpatient computerized physician medication order entry systems: a systematic review. J Am Med Inform Assoc. 2007;14(4):400–6. doi: 10.1197/jamia.M2238. - DOI - PMC - PubMed
    1. Eslami S, de Keizer NF, Abu-Hanna A. The impact of computerized physician medication order entry in hospitalized patients--a systematic review. Int J Med Inform. 2008;77(6):365–76. doi: 10.1016/j.ijmedinf.2007.10.001. - DOI - PubMed

Publication types