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Are profitable hospitals more digitally mature? An explorative study using data from the German DigitalRadar Project

Author

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  • Vogel, Justus
  • Hollenbach, Johannes
  • Haering, Alexander
  • Augurzky, Boris
  • Geissler, Alexander

Abstract

Public investment in hospitals in Germany has been insufficient for decades, making it difficultto finance digitization. Due to dual financing, hospitals could alternatively use their own profitsto pay for digitization efforts. This raises the question of whether there is a relationship betweenprofitability and digitization, i.e., whether profitable hospitals are more digitally mature, and whatother factors might influence digital maturity. To investigate this relationship, we use novel data ondigital maturity of German hospitals and combine them with balance sheet data. Our multivariateregression results do not show a robust correlation between profitability and digital maturity.Rather, being part of a large chain seems to be more important for digitalization. We concludethat hospitals in chains are more digitally mature because they benefit from a standardizationof IT infrastructure and internal policies. Individual hospitals may also benefit from centralizingparts of their IT strategy development.

Suggested Citation

  • Vogel, Justus & Hollenbach, Johannes & Haering, Alexander & Augurzky, Boris & Geissler, Alexander, 2023. "Are profitable hospitals more digitally mature? An explorative study using data from the German DigitalRadar Project," Ruhr Economic Papers 1024, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:284395
    DOI: 10.4419/96973190
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    References listed on IDEAS

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    1. Klein-Hitpaß, Uwe & Scheller-Kreinsen, David, 2015. "Policy trends and reforms in the German DRG-based hospital payment system," Health Policy, Elsevier, vol. 119(3), pages 252-257.
    2. Augurzky, Boris & Schmitz, Hendrik, 2013. "Wissenschaftliche Untersuchung zu den Ursachen unterschiedlicher Basisfallwerte der Länder als Grundlage der Krankenhausfinanzierung," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 111432.
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    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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