Does Information Technology Investment Influences Firm’s Market Value? The Case of Non-Publicly Traded Healthcare Firms

Managers make informed information technology investment decisions when they are able to quantify how IT contributes to firm performance. While financial accounting measures inform IT’s influence on retrospective firm performance, senior managers expect evidence of how IT influences prospective measures such as the firm’s market value. We examine the efficacy of IT’s influence on firm value combined with measures of financial performance for non-publicly traded (NPT) hospitals that lack conventional market-based measures. We gathered actual sale transactions for NPT hospitals in the United States to derive the q ratio, a measure of market value. Our findings indicate that the influence of IT investment on the firm is more pronounced and statistically significant on firm value than exclusively on the accounting performance measures. Specifically, we find that the impact of IT investment is not significant on return on assets (ROA) and operating income for the same set of hospitals. This research note contributes to research and practice by demonstrating that the overall impact of IT is better understood when accounting measures are complemented with the firm’s market value. Such market valuation is also critical in merger and acquisition decisions, an activity that is likely to accelerate in the healthcare industry. Our findings provide hospitals, as well as other NPT firms, with insights into the impact of IT investment and a pragmatic approach to demonstrating IT’s contribution to firm value

The Promise of Health Information Technology: Ensuring that Florida's Children Benefit

Substantial policy interest in supporting the adoption of Health Information Technology (HIT) by the public and private sectors over the last 5 -- 7 years, was spurred in particular by the release of multiple Institute of Medicine reports documenting the widespread occurrence of medical errors and poor quality of care (Institute of Medicine, 1999 & 2001). However, efforts to focus on issues unique to children's health have been left out of many of initiatives. The purpose of this report is to identify strategies that can be taken by public and private entities to promote the use of HIT among providers who serve children in Florida

Commercialisation of innovations from the UK National Health Service

The potential opportunities offered by developing innovative ideas from staff within the UK National Health Service (NHS) was recognised in 2000 and this paper describes a regional organisation, Medipex, which was set up to undertake technology transfer and commercialisation of innovations from the NHS in Yorkshire. The approach adopted by Medipex has been shown to be a successful model for the commercialisation of IP, obtaining private sector investment and winning external recognition after its first three years trading. Analysis of the outputs demonstrates that though the majority of ideas emerge from service use, the innovations that have high-value commercial potential emerge from research undertaken in the hospitals

Accessing Antecedents and Outcomes of RFID Implementation in Health Care

This research first conceptualizes, develops, and validates four constructs for studying RFID in health care, including Drivers (Internal and External), Implementation Level (Clinical Focus and Administrative Focus), Barriers (Cost Issues, Lack of Understanding, Technical Issues, and Privacy and Security Concerns), and Benefits (Patient Care, Productivity, Security and Safety, Asset Management, and Communication). Data for the study were collected from 88 health care organizations and the measurement scales were validated using structural equation modeling. Second, a framework is developed to discuss the causal relationships among the above mentioned constructs. It is found that Internal Drivers are positively related to Implementation Level, which in turn is positively related to Benefits and Performance. In addition, Barriers are found to be positively related to Implementation Level, which is in contrast to the originally proposed negative relationship. The research also compares perception differences regarding RFID implementation among the non-implementers, future implementers, and current implementers of RFID. It is found that both future implementers and current implementers consider RFID barriers to be lower and benefits to be higher compared to the non-implementers. This paper ends with our research implications, limitations and future research

Hospitality healthscapes: a conjoint analysis approach to understanding patient responses to hotel-like hospital rooms

In an increasingly competitive market, healthcare providers are incorporating best practices from the hospitality industry to improve the patient experience. The present study offers a model of hospitality healthscapes to provide a patient-based perspective of the infusion of hospitality into healthcare. A study of 406 respondents examined the hotel-like attributes that patients prefer in hospital rooms and the effect of their provision on patients’ well-being and willingness to pay higher out-of-pocket expenses. Using conjoint analysis and 3D visual representations of hospital rooms, the study found that high-end material finishes and hospitality-certified healthcare staff were the two greatest influences on patient choice. The study also found some differences between the preferences of “less healthy” and “more healthy” patients, with the less healthy patients willing to pay, on average, 13% higher out-of-pocket expenses for hotel-like hospital rooms than the more healthy patients. This study represents the first attempt in the evidence-based design literature to holistically and empirically examine the infusion of hospitality into healthcare by emphasizing the “patient as customer.” The findings have important marketing implications for healthcare providers who wish to enhance the patient experience

Subject: Specific Industries

Compiled by Susan LaCette.SpecificIndustries.pdf: 885 downloads, before Oct. 1, 2020

Health System Reform: The Value and Price of Innovation

Explores the role of innovation in healthcare by reviewing the literature on international, federal, state, and local examples of system change; barriers to change; the contributions of research, academia, and industry; and the financing of innovation

First, Treat the System: The Atlantic Philanthropies' Effort to Promote Health and Equity in Viet Nam by Investing in a Healthier, More Equitable System of Policy, Practice, and Care

Describes Atlantic's investments and early outcomes in helping develop a more complete and equitable primary care system as well as a culture of public health policy and practice in partnership with the East Meets West Foundation and local institutions

Electronic Medical Record Adoption in New Zealand Primary Care Physician Offices

Describes EMR adoption in New Zealand's primary healthcare system, including how government investment was secured and data protection laws, unique patient identifiers, and standards and certification were established, with lessons for the United States