Hospital Ownership Type and Innovation: The Case of Electronic Medical Records Adoption

Abstract

Nonprofit and for-profit firms coexist in many industries, with the hospital sector being one of the most predominant examples. This article explores whether nonprofit hospitals are more likely to make expensive investments with uncertain returns and potential public good value. Specifically, we estimate differences in the adoption of electronic medical records (EMRs) by ownership structure. We find that nonprofit hospitals are 11 to 18 percentage points more likely to have installed advanced EMR systems than for-profit hospitals by 2012. Although we find little difference in the likelihood of meeting initial government requirements for the “meaningful use” of EMRs, we find that nonprofits are 12 percentage points more likely to reach more stringent meaningful use standards that began in 2014. That being said, nonprofit adoption rates decrease as for-profit market penetration rates increase, suggesting nonprofits are less likely to adopt an uncertain technology when facing more direct competition from for-profit hospitals.

Facility and state-level factors associated with telemental health (TMH) adoption among mental health facilities in the United States

“…The explanatory variables were selected based on the common constructs and factors that have been examined in previous studies on telehealth, EMR, and other HITs. 18–21 Consistent with the findings of these studies, we hypothesized that the adoption of TMH by a mental health facility may be associated with multiple state-and facility-level factors, including environmental resources, policy, market, and facility-level characteristics (e.g. ownership, patient volumes, payer mix, etc.…”

“…However, rigorous studies of TMH adoption are lacking. Likewise, although several studies have investigated factors associated with the adoption of the Electronic Medical Record (EMR) system and other Health Information Technologies (HITs), 18–21 little is known about the factors associated with TMH adoption. Such knowledge is needed to inform healthcare policy and allocation of healthcare resources as well as to improve healthcare outcomes of patients with MHCs through TMH-affiliated collaborative care.…”

Telepsychiatry adoption across hospitals in the United States: a cross-sectional study

“…For-profit hospitals earn profits that go to shareholders; while private not-for-profit hospitals often receive tax exemptions that are unavailable to for-profit hospitals [ 39 ]. Private hospitals often have access to latest technologies and equipment, and hospital owners and administrators determine the budget, financing and regulation compliance [ 40 ]. Hospitals may be freestanding or affiliated with a health system (i.e., system affiliated hospitals).…”

What Does Innovation Mean to Nonprofit Practitioners? International Insights From Development and Peace-Building Nonprofits

“…Despite the unique goals and motivations of nonprofits compared with organizations in other sectors, prior studies on nonprofit innovation overwhelmingly applied predefined conceptualizations of innovation from the business literature to nonprofit organizations seeking survival and fulfillment of their social missions (Choi, 2014; Freedman & Lin, 2018; Jaskyte, 2011, 2013, 2015; Jaskyte & Lee, 2006; Weerawardena & Mort, 2012; Wemmer & Koenigstorfer, 2016). Applying the for-profit version of innovation that emphasizes profit maximization and competitive advantage to nonprofits may not adequately capture their general motivations of not only surviving but also working toward social goals (Edwards-Schachter, Matti, & Alcántra, 2012; Phillips, Lee, Ghobadian, O’Regan, & James, 2015; Westley, Antadze, Riddell, Robinson, & Geobey, 2014).…”