Hospital financial performance: Does IT governance make a difference?

Darrell Burke, Ebrahim Randeree, Nir Menachemi, Robert G. Brooks

Research output: Contribution to journalArticle

7 Scopus citations

Abstract

This study examined whether information technology (IT) governance, a term describing the decision authority and reporting structures of the chief information officer (CIO), is related to the financial performance of hospitals. The study was conducted using a combination of primary survey data regarding health care IT adoption and reporting structures of Florida acute care hospitals, with secondary data on hospital financial performance. Multiple regression models were used to evaluate the relationship of the 3 most commonly identified reporting structures. Outcome variables included measures of operating revenue and operating expense. All models controlled for overall IT adoption, ownership, membership in a hospital system, case mix, and hospital bed size. The results suggest that IT governance matters when it comes to hospital financial performance. Reporting to the chief financial officer brings positive outcomes; reporting to the chief executive officer has a mixed financial result; and reporting to the chief operating officer was not associated with discernible financial impact.

Original languageEnglish (US)
Pages (from-to)71-78
Number of pages8
JournalHealth Care Manager
Volume27
Issue number1
DOIs
StatePublished - Jan 1 2008
Externally publishedYes

Keywords

  • Financial performance
  • Hospital information systems
  • IT governance
  • Outcome measures

ASJC Scopus subject areas

  • Leadership and Management
  • Health(social science)
  • Health Policy
  • Care Planning

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