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Information and Communications Technology in Chronic Disease Care: Why is Adoption So Slow and Is Slower Better?

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  • Michael C. Christensen
  • Dahlia Remler

Abstract

Unlike the widespread adoption of information and communications technology (ICT) in much of the economy, adoption of ICT in clinical care is limited. We examine how a number of not previously emphasized features of the health care and ICT markets interact and exacerbate each other to create barriers for adoption. We also examine how standards can address these barriers and the key issues to consider before investing in ICT. We conclude that the ICT market exhibits a number of unique features that may delay or completely prevent adoption, including low product differentiation, high switching costs, and lack of technical compatibility. These barriers are compounded by the many interlinked markets in health care, which substantially blunt the use of market forces to influence adoption. Patient heterogeneity also exacerbates the barriers by wide variation in needs and ability for using ICT, by high demands for interoperability, and by higher replacement costs. Technical standards are critical for ensuring optimal use of the technology. Careful consideration of the socially optimal time to invest is needed. The value of waiting in health care is likely to be so much greater than in other sectors because the costs of adopting the wrong type of ICT are so much higher.

Suggested Citation

  • Michael C. Christensen & Dahlia Remler, 2007. "Information and Communications Technology in Chronic Disease Care: Why is Adoption So Slow and Is Slower Better?," NBER Working Papers 13078, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:13078
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    Cited by:

    1. Cristiano CODAGNONE & Giovanni LIVA & Egidijus BARCEVICIUS & Gianluca MISURACA & Luka KLIMAVICIUTE & Michele BENEDETTI & Irene VANINI & Giancarlo VECCHI & Emily RYEN GLOINSON & Katherine STEWART & Sti, 2020. "Assessing the impacts of digital government transformation in the EU: Conceptual framework and empirical case studies," JRC Research Reports JRC120865, Joint Research Centre.
    2. Zahra Galavi & Mahdieh Montazeri & Leila Ahmadian, 2022. "Barriers and challenges of using health information technology in home care: A systematic review," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(5), pages 2542-2568, September.

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    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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