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Impacts of cybersecurity on hospital efficiency and financial performance

Author

Listed:
  • C. Christopher Lee

    (Central Connecticut State University)

  • Jeong Hoon Choi

    (Youngstown State University)

  • Jung Young Lee

    (Northern Illinois University)

  • Sima Fortsch

    (Northern Kentucky University)

Abstract

This study investigates the impact of cybersecurity on hospital efficiency and financial performance, with hospital size as a moderating factor. The objective is to assess whether the implementation of multi-factor authentication (MFA), as a measure of cybersecurity, influences hospital efficiency and financial performance. The results show that hospitals implementing MFA experience higher efficiency and better financial performance compared to those without MFA. However, hospital size slightly moderates this effect, with larger hospitals seeing a reduced benefit from cybersecurity implementation. These findings highlight the importance of cybersecurity and suggest that hospitals must tailor their cybersecurity efforts considering their size.

Suggested Citation

  • C. Christopher Lee & Jeong Hoon Choi & Jung Young Lee & Sima Fortsch, 2025. "Impacts of cybersecurity on hospital efficiency and financial performance," Service Business, Springer;Pan-Pacific Business Association, vol. 19(1), pages 1-24, March.
    • Handle: RePEc:spr:svcbiz:v:19:y:2025:i:1:d:10.1007_s11628-024-00574-y
    DOI: 10.1007/s11628-024-00574-y
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