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Monitoring technology and firm boundaries: Physician-hospital integration and technology utilization

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  • McCullough, Jeffrey S.
  • Snir, Eli M.

Abstract

We study the relationship between physician-hospital integration and its relation to monitoring IT utilization. We develop a theoretical model in which monitoring IT may complement or substitute for integration and test these relationships using a novel data source. Physician labor market heterogeneity identifies the empirical model. We find that monitoring IT utilization is increasing in integration, implying that expanded firm boundaries complement monitoring IT adoption. We argue that the relationship between monitoring IT and firm boundaries depends upon the contractibility of the monitored information.

Suggested Citation

  • McCullough, Jeffrey S. & Snir, Eli M., 2010. "Monitoring technology and firm boundaries: Physician-hospital integration and technology utilization," Journal of Health Economics, Elsevier, vol. 29(3), pages 457-467, May.
    • Handle: RePEc:eee:jhecon:v:29:y:2010:i:3:p:457-467
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    Cited by:

    1. Jeffrey S. McCullough & Stephen T. Parente & Robert Town, 2013. "Health Information Technology and Patient Outcomes: The Role of Organizational and Informational Complementarities," NBER Working Papers 18684, National Bureau of Economic Research, Inc.
    2. Eric Lammers, 2013. "The Effect Of Hospital–Physician Integration On Health Information Technology Adoption," Health Economics, John Wiley & Sons, Ltd., vol. 22(10), pages 1215-1229, October.
    3. Eva Labro & Lorien Stice-Lawrence, 2020. "Updating Accounting Systems: Longitudinal Evidence from the Healthcare Sector," Management Science, INFORMS, vol. 66(12), pages 6042-6061, December.

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