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An Analysis of the Adoption of Digital Health Records Under Switching Costs

Author

Listed:
  • Zafer Ozdemir

    (Decision Sciences/MIS, Miami University, Oxford, Ohio 45056)

  • Jack Barron

    (Purdue University, West Lafayette, Indiana 47907)

  • Subhajyoti Bandyopadhyay

    (Information Systems and Operations Management, University of Florida, Gainesville, Florida 32611)

Abstract

We investigate the incentive issues that surround the adoption and sharing of electronic health records (EHR) and the potential role of a personal health record (PHR) platform in facilitating data sharing. Through our analysis, we find evidence that health-care providers may not have an incentive to share patients' records electronically even though EHR systems will increase consumer surplus, especially in the presence of provider heterogeneity and myopic consumers. In this context, we find that an independent PHR platform can create incentives for the providers to share their patients' records electronically with other providers by selectively subsidizing them. In a pluralistic health-care system like that in the United States, where health-care providers have varying incentives to implement electronic health records, an online PHR platform can provide a proxy for a “national health information network,”' wherein consumers can freely exchange their health records among competing providers.

Suggested Citation

  • Zafer Ozdemir & Jack Barron & Subhajyoti Bandyopadhyay, 2011. "An Analysis of the Adoption of Digital Health Records Under Switching Costs," Information Systems Research, INFORMS, vol. 22(3), pages 491-503, September.
    • Handle: RePEc:inm:orisre:v:22:y:2011:i:3:p:491-503
    DOI: 10.1287/isre.1110.0349
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    References listed on IDEAS

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    1. Paul Klemperer, 1995. "Competition when Consumers have Switching Costs: An Overview with Applications to Industrial Organization, Macroeconomics, and International Trade," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(4), pages 515-539.
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    3. von Weizsacker, C Christian, 1984. "The Costs of Substitution," Econometrica, Econometric Society, vol. 52(5), pages 1085-1116, September.
    4. Paul Klemperer, 1987. "The Competitiveness of Markets with Switching Costs," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 138-150, Spring.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Emre M. Demirezen & Subodha Kumar & Arun Sen, 2016. "Sustainability of Healthcare Information Exchanges: A Game-Theoretic Approach," Information Systems Research, INFORMS, vol. 27(2), pages 240-258, June.
    2. Brown, A. & Fishenden, Jerry & Thompson, M. & Venters, Will, 2017. "Appraising the impact and role of platform models and Government as a Platform (GaaP) in UK Government public service reform: towards a Platform Assessment Framework (PAF)," LSE Research Online Documents on Economics 73864, London School of Economics and Political Science, LSE Library.
    3. Sebastian Hermes & Tobias Riasanow & Eric K. Clemons & Markus Böhm & Helmut Krcmar, 2020. "The digital transformation of the healthcare industry: exploring the rise of emerging platform ecosystems and their influence on the role of patients," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 1033-1069, November.
    4. Jing Wu & He Li & Zhangxi Lin & Khim-Yong Goh, 2017. "How big data and analytics reshape the wearable device market – the context of e-health," International Journal of Production Research, Taylor & Francis Journals, vol. 55(17), pages 5168-5182, September.
    5. Sean Hansen & A. James Baroody, 2020. "Electronic Health Records and the Logics of Care: Complementarity and Conflict in the U.S. Healthcare System," Information Systems Research, INFORMS, vol. 31(1), pages 57-75, March.
    6. Laurence C. Baker & Kate Bundorf & Daniel Kessler, 2014. "Expanding Patients' Property Rights In Their Medical Records," NBER Working Papers 20565, National Bureau of Economic Research, Inc.
    7. Ali, Omar & Shrestha, Anup & Soar, Jeffrey & Wamba, Samuel Fosso, 2018. "Cloud computing-enabled healthcare opportunities, issues, and applications: A systematic review," International Journal of Information Management, Elsevier, vol. 43(C), pages 146-158.
    8. Jing Wu & He Li & Zhangxi Lin & Haichao Zheng, 2017. "Competition in wearable device market: the effect of network externality and product compatibility," Electronic Commerce Research, Springer, vol. 17(3), pages 335-359, September.
    9. Xu, Zhuo, 2019. "An empirical study of patients' privacy concerns for health informatics as a service," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 297-306.
    10. Sharma, Mahak & Sehrawat, Rajat, 2020. "A hybrid multi-criteria decision-making method for cloud adoption: Evidence from the healthcare sector," Technology in Society, Elsevier, vol. 61(C).
    11. Singha, Sumanta & Arha, Himanshu & Kar, Arpan Kumar, 2023. "Healthcare analytics: A techno-functional perspective," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    12. Tarakci, Hakan & Kulkarni, Shailesh & Ozdemir, Zafer D., 2018. "The impact of wearable devices and performance payments on health outcomes," International Journal of Production Economics, Elsevier, vol. 200(C), pages 291-301.
    13. Kraus, Sascha & Schiavone, Francesco & Pluzhnikova, Anna & Invernizzi, Anna Chiara, 2021. "Digital transformation in healthcare: Analyzing the current state-of-research," Journal of Business Research, Elsevier, vol. 123(C), pages 557-567.

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