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Factors Affecting Outsourcing for Information Technology Services in Rural Hospitals: Theory and Evidence


  • Whitacre, Brian E.
  • Fannin, James Matthew
  • Barnes, James N.


As health information technology becomes more prevalent for most healthcare facilities, hospitals across the nation are choosing between performing this service in-house and outsourcing to a technology firm in the health industry. This paper examines factors affecting the information technology (IT) outsource decision for various hospitals. Using 2004 data from the American Hospital Association, logistic regression models find that governmental ownership and a proxy variable for hospitals that treat more severe injuries positively impact the probability of outsourcing for IT services.

Suggested Citation

  • Whitacre, Brian E. & Fannin, James Matthew & Barnes, James N., 2008. "Factors Affecting Outsourcing for Information Technology Services in Rural Hospitals: Theory and Evidence," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6393, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saeaed:6393

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    References listed on IDEAS

    1. Ron Borzekowski, 2002. "Health care finance and the early adoption of hospital information systems," Finance and Economics Discussion Series 2002-41, Board of Governors of the Federal Reserve System (U.S.).
    2. Alfredo Esposto, 2004. "Contractual Integration of Physician and Hospital Services in the U.S," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 8(1), pages 49-69, March.
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    Cited by:

    1. Mariani, Laura & Cavenago, Dario, 2014. "Defining hospital's internal boundaries. An organisational complexity criterion," Health Policy, Elsevier, vol. 117(2), pages 239-246.

    More about this item


    Health Information Technology; Outsourcing; Hospital; Health Economics and Policy; Labor and Human Capital; Research and Development/Tech Change/Emerging Technologies; I12; C140;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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