The Impact of Data Analytics on Hospital Performance

Abstract

The healthcare industry has yet to harness the full potential of data analytics in administrative and clinical care operations. Indeed, evidence of data analytics impacts on hospital operations is sparse. This study helps close this research gap by examining the effect of data analytics on hospital clinical operations. A conceptual model is proposed, anchored to dynamic capabilities theory. Using ten years of secondary data for more than 2,500 US hospitals, econometrics analyses provide evidence of a positive impact of clinical data analytical systems (CDAS) on patient experience. However, no similar evidence is found with overall hospital operational performance. Thus, while data analytics can have a targeted impact, organizational-wide effects appear to be more complex. Implications for practitioners and academics are discussed

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