3. Health Information Technology in U.S Hospitals: How Much, How Fast?
3.6. Analysis and Results
3.7.2. Implications for Practice
Our study suggests that IT executives and managers in hospitals should not rely solely on their CPM capability, but should (1) determine where to prioritize their performance goals, (2) evaluate their patient engagement and transition capabilities, and (3) pace the growth of their CPM capability based on the current patient capabilities. Consequently, they should establish collaborative processes to dynamically align their rate of growth of use of CPM capability and patient capabilities for hospital performance.
Given the potential to leverage HIT capabilities to influence patient quality and cost of care, hospitals need to allocate investments in patient capabilities while also considering the rate of growth of their CPM capability. They also need to recognize that there are significant cost and patient consequences to growing their CPM capability under the wrong patient engagement and transition conditions. On the one hand, ramping up CPM capability while in a high patient engagement and high patient transition capability environment is likely to decrease costs, but on the other hand, under these same conditions pneumonia readmission rates are likely to increase. By adjusting the rate of growth of use of CPM capability conditional on patient capabilities, hospitals can affect patient quality and cost of care.
3.7.3. Conclusion
Our study shows that a hospital’s Clinical Process Management capability affects hospital performance and that this effect is conditional on two patient capabilities – Patient Engagement and Patient Transition. It also suggests that not just the level of a capability but also the rate of growth of a capability that affects hospital performance and that the rate needs to be adjusted
upward or downward based on the level of complementary capabilities. Our findings advance our theoretical understanding about the business value to a firm’s IT resources directed at core business processes by: (1) interpreting capabilities for process management with a coordination focus and (2) combining the capabilities perspective with the complementarities perspective. The findings also advance theory about IT business value and IT capabilities by surfacing why it is not only the level of a capability but also the rate of its growth that affects business value and why the rate of growth can be too fast or too slow based on the level of complementary capabilities.
97
3.8.
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