Replication data for: The Trillion Dollar Conundrum: Complementarities and Health Information Technology

  • David Dranove (Creator)
  • Chris Forman (Creator)
  • A. V I Goldfarb (Creator)
  • Shane Greenstein (Creator)



We examine the heterogeneous relationship between the adoption of EMR and hospital operating costs at thousands of US hospitals between 1996 and 2009. We first document a previously-identified puzzle: Adoption of EMR is associated with a slight cost increase. Drawing on the literature on IT and productivity, we analyze why this average effect arises. We find that: (i) EMR adoption is initially associated with a rise in costs; (ii) EMR adoption at hospitals in IT-intensive locations leads to a decrease in costs after three years; and (iii) Hospitals in other locations experience an increase in costs even after six years.

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