The Effects of the Assimilation and Use of IT Applications on Financial Performance in Healthcare Organizations

Special Issue Pankaj Setia University of Arkansas [email protected] Monika Setia Duke-NUS Graduate Medical School [email protected] Ranjani Krishnan Michigan State University [email protected] Vallabh Sambamurthy Michigan State University [email protected] Volume 12, Special Issue, pp. 274-298, March 2011 The Effects of the Assimilation and Use of IT Applications on Financial Performance in Healthcare Organizations This research examines the impacts of the assimilation and use of IT on the financial performance of hospitals. We identify two dimensions of IT assimilation and use. They are the IT applications architecture spread, which is the adoption of a broad array of IT solutions, and IT applications architecture longevity, which is the length of experience with use of specific IT solutions. We examine the extent to which these dimensions of assimilation within the business and clinical work processes impact hospital performance. Compared with the effects of IT applications architecture spread, we find that the IT applications architecture longevity has a more significant effect on financial performance. In addition, the effects of assimilation manifest differently across the business and clinical process domains. Our results enhance understanding about the manner in which the assimilation and use of IT contributes to the financial performance of hospitals.