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Network Effects of Health Information Technology: Evidence from California Hospitals

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  • Jinhyung Lee

    (Sungkyunkwan University)

Abstract

A number of studies have investigated the factors affecting health information technology(IT). However, these studies have not focused on the possibility that some products have more value when others are using them as well. The importance of this network effect has been widely recognized in IT industry organizations as well as in other sectors. However, few empirical studies have looked at the network effect in health IT adoption. This paper examines the impact of neighbor hospitals�� IT capital adoption and IT labor employment on a hospital��s IT capital adoption, using the California Office of Statewide Health Planning and Development (OSHPD) data from 2000 to 2007. Findings show that neighbor hospitals�� IT capital adoption and IT labor employment were associated with an increase in a hospital��s IT capital adoption.This network effect varied across hospital characteristics.

Suggested Citation

  • Jinhyung Lee, 2015. "Network Effects of Health Information Technology: Evidence from California Hospitals," Korean Economic Review, Korean Economic Association, vol. 31, pages 359-381.
    • Handle: RePEc:kea:keappr:ker-20151231-31-2-05
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    References listed on IDEAS

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    Cited by:

    1. Seungchul Lee & Chune Young Chung & Hong Kee Sul & Yunjae Lee, 2017. "Determinants of Market Share of For-Profit Hospitals: An Empirical Examination," Social Sciences, MDPI, vol. 6(4), pages 1-12, October.

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    More about this item

    Keywords

    Health Information Technology (IT); Network Effect;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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