TY - JOUR
T1 - Investment subsidies and the adoption of electronic medical records in hospitals
AU - Dranove, David
AU - Garthwaite, Craig
AU - Li, Bingyang
AU - Ody, Christopher
N1 - Publisher Copyright:
© 2015 Elsevier B.V.
Copyright:
Copyright 2015 Elsevier B.V., All rights reserved.
PY - 2015/12/1
Y1 - 2015/12/1
N2 - In February 2009 the U.S. Congress unexpectedly passed the Health Information Technology for Economic and Clinical Health Act (HITECH). HITECH provides up to $27 billion to promote adoption and appropriate use of Electronic Medical Records (EMR) by hospitals. We measure the extent to which HITECH incentive payments spurred EMR adoption by independent hospitals. Adoption rates for all independent hospitals grew from 48 percent in 2008 to 77 percent by 2011. Absent HITECH incentives, we estimate that the adoption rate would have instead been 67 percent in 2011. When we consider that HITECH funds were available for all hospitals and not just marginal adopters, we estimate that the cost of generating an additional adoption was $48 million. We also estimate that in the absence of HITECH incentives, the 77 percent adoption rate would have been realized by 2013, just 2 years after the date achieved due to HITECH.
AB - In February 2009 the U.S. Congress unexpectedly passed the Health Information Technology for Economic and Clinical Health Act (HITECH). HITECH provides up to $27 billion to promote adoption and appropriate use of Electronic Medical Records (EMR) by hospitals. We measure the extent to which HITECH incentive payments spurred EMR adoption by independent hospitals. Adoption rates for all independent hospitals grew from 48 percent in 2008 to 77 percent by 2011. Absent HITECH incentives, we estimate that the adoption rate would have instead been 67 percent in 2011. When we consider that HITECH funds were available for all hospitals and not just marginal adopters, we estimate that the cost of generating an additional adoption was $48 million. We also estimate that in the absence of HITECH incentives, the 77 percent adoption rate would have been realized by 2013, just 2 years after the date achieved due to HITECH.
KW - Electronic medical records
KW - Hospitals
KW - Investment subsidies
UR - http://www.scopus.com/inward/record.url?scp=84949530453&partnerID=8YFLogxK
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U2 - 10.1016/j.jhealeco.2015.10.001
DO - 10.1016/j.jhealeco.2015.10.001
M3 - Article
C2 - 26596789
AN - SCOPUS:84949530453
VL - 44
SP - 309
EP - 319
JO - Journal of Health Economics
JF - Journal of Health Economics
SN - 0167-6296
ER -