Management in Health, Vol 19, No 4 (2015)

Font Size:  Small  Medium  Large

AN EXPERIMENTAL STUDY AND MARKET BASKET ANALYSIS ON MANAGER OF HEALTHCARE FACILITIES IN INDONESIA: TESTING THE CAUSAL DIRECTION BETWEEN PROFITABILITY AND INVESTMENT IN HEALTH INFORMATION TECHNOLOGY

Julius JILLBERT, Reza M. PRIMAGUNA, Ikhwan M. NURDIN

Abstract


This paper investigates possible correlations between the profitability of a healthcare organization and their decision regarding Healthcare Information Technology (HIT) investments. Earlier studies have shown a positive correlation, i.e., higher profitability seemed to be correlated with higher HIT investments. The causal direction, however, remained unclear. A variety of experiments were then conducted to explore the question how different profitability levels and trends affect management's inclination to increase or decrease the HIT budget. Study results showed that (i) a higher

level of profitability, (ii) an increasing profitability trend, and (iii) an increasing HIT budget trend all have a significant positive affect on test subjects' willingness to spend money on HIT. The positive correlation between HIT investments and profitability shown thus seems at least partly due to the greater willingness of successful healthcare facilities to spend more money on HIT.

Keywords - Healthcare Information Technology, Profitability, Investment, Budget, Experimental Study, Market Basket Analysis


Full Text: PDF

Journal published by SNSPMS