Information Technology in the Health Care Industry: A Primer
Peter B. Southard, Soongoo Hong, Keng Siau Department of Management College of Business Administration University of Nebraska-Lincoln Lincoln, NE 68588-0491 USA
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The paper discusses current and future applications of information technology within the healthcare industry. It presents some broad strategies for approaching information technology investments and various tools available.
Today, information technology is considered not just a supporting tool but a “strategic necessity” by world class organizations. As competition increases, the use of more sophisticated information technology tools and techniques, such as information warehousing and the Internet, is imperative in order for organizations to obtain a competitive advantage. The health care industry, with its shifting regulation, is not immune from this escalating wave of competitiveness. Information has been developed regarding how a company should approach capital expenditures in information technology but none of it appears practical with regards to this particular segment of industry. This paper discusses how health care organizations should approach information systems investments. It also discusses how information technology can support the medical providers’ competitive strategy.
avenue for communication in both research and health care marketing. Most hospitals and clinics in the 1970s and 1980s implemented hospital information systems for administrative purposes as a way to deal with patient admission and billing processes. In the 1990s, health care organizations started to use information systems for clinical purposes to improve patient care . Health care organizations (providers) must carefully plan how to use scarce assets in order to best compete.