Improving the healthcare system through information
Citation: Ayvaci, Mehmet, Cavusoglu, Huseyin, Kim, Yeongin, and Raghunathan, Srinivasan “Designing Payment Contracts for Healthcare Services to Induced Information Sharing: The Adoption and the Value of Health Information Exchanges (HIEs).” Management Information Systems Quarterly (forthcoming)
Critical to improving the nation’s healthcare system is the adoption of health information technologies that allow for the diffusion of health information outside the boundaries of a care provider (e.g., hospital). This paper studies the relationships between care providers’ incentives to adopt IT for health information exchanges, a healthcare payment model, and the societal value of health IT. We show that assessing the value of health IT in isolation from the underlying payment model may lead to misestimates of health IT’s value. We further point out the value of health IT adoption changes as payment models evolve. Finally, we propose a new payment model that can better realize the potential of health IT.