How Hospitals Differentiate Health Information Technology Portfolios for Clinical Care Efficiency: Insights from the HITEACH Act

Our research reveals the significant impact of evolving policy uncertainty on hospital strategies to mitigate cost-based performance deficits in clinical care processes through differentiation in search for health information technology (HIT). Key for hospital administrators and managers, our findings reveal the benefit of leveraging external benchmarks for performance feedback, enabling strategic, innovative approaches to HIT investments tailored to enhance clinical care efficiency and cost-effectiveness. Moreover, our findings have important implications for healthcare policymakers, highlighting the necessity to consider the varied responses of hospitals to policy fluctuations. Recognizing that hospitals proactively adapt their HIT portfolios in anticipation of new laws, and that these adaptations are most diverse under moderate policy uncertainty, is crucial. This nuanced understanding can guide policymakers in fostering an environment that encourages both the exploration of novel technologies and the widespread adoption of effective solutions across the healthcare spectrum. By bridging the gap between policy development and hospital administration, our work offers a road map for aligning strategic technological differentiation with policy objectives, ultimately enhancing healthcare delivery and outcomes.