Strategic risk analysis for information technology outsourcing in hospitals

This study examines the effects of outsourced information technology (IT) on hospital productivity by using California hospital data from 1997 to 2007. I estimated the parameters of a value-added hospital production function, correcting for endogenous input choices. I found that in comparison to in-house IT, outsourced IT has a more considerable impact on hospital productivity in the short run. However, in the long run, in-house IT has a more...