Performance of Accountable Care Organizations: Health Information Technology and Quality–Efficiency Trade-Offs

Published Online:https://doi.org/10.1287/isre.2021.1080

References

  • Adjerid I, Adler-Milstein J, Angst C (2018) Reducing Medicare spending through electronic health information exchange: The role of incentives and exchange maturity. Inform. Systems Res. 29(2):341–361.LinkGoogle Scholar
  • Agha L (2014) The effects of health information technology on the costs and quality of medical care. J. Health Econom. 34:19–30.CrossrefGoogle Scholar
  • Atasoy H, Chen PY, Ganju K (2017) The spillover effects of health IT investments on regional healthcare costs. Management Sci. 64(6):2515–2534.LinkGoogle Scholar
  • Ayabakan S, Bardhan IR, Zheng Z (2017a) A data envelopment analysis approach to estimate it-enabled production capability. MIS Quart. 41(1):189–205.CrossrefGoogle Scholar
  • Ayabakan S, Bardhan IR, Banker RD, Tripathi M (2021) Hype or hope? Selection and performance of value-based healthcare programs. Working paper, University of Texas at Austin.Google Scholar
  • Ayabakan S, Bardhan IR, Zheng ZE, Kirksey K (2017b) The impact of health information sharing on duplicate testing. MIS Quart. 41(4):1083–1103.CrossrefGoogle Scholar
  • Banker RD, Charnes A, Cooper WW (1984) Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Sci. 30(9):1078–1092.LinkGoogle Scholar
  • Bao C, Bardhan IR, Singh H, Meyer BA, Kirksey K (2020) Patient-provider engagement and its impact on health outcomes: A longitudinal study of patient portal use. MIS Quart. 44(2):699–723.CrossrefGoogle Scholar
  • Bardhan I, Oh JH, Zheng Z, Kirksey K (2015) Predictive analytics for readmission of patients with congestive heart failure. Inform. Systems Res. 26(1):19–39.LinkGoogle Scholar
  • Barrett S, Konsynski B (1982) Inter-organization information sharing systems. MIS Quart. 6(Special Issue):93–105.CrossrefGoogle Scholar
  • Bates DW, Saria S, Ohno-Machado L, Shah A, Escobar G (2014) Big data in healthcare: Using analytics to identify and manage high-risk and high-cost patients. Health Affairs 33(7):1123–1131.CrossrefGoogle Scholar
  • Bharadwaj S, Bharadwaj A, Bendoly E (2007) The performance effects of complementarities between information systems, marketing, manufacturing, and supply chain processes. Inform. Systems Res. 18(4):437–453.LinkGoogle Scholar
  • Boulding W, Glickman SW, Manary MP, Schulman KA, Staelin R(2011) Relationship between patient satisfaction with inpatient care and hospital readmission within 30 days. Amer. J. Managed Care 17(1):41–48.Google Scholar
  • Brice YN, Joynt KE, Tompkins CP, Ritter GA (2018) Meaningful use and hospital performance on post‐acute utilization indicators. Health Services Res. 53(2):803–823.CrossrefGoogle Scholar
  • Burns LR, Pauly MV (2012) Accountable care organizations may have difficulty avoiding the failures of integrated delivery networks of the 1990s. Health Affairs 31(11):2407–2416.CrossrefGoogle Scholar
  • Chiedi JM (2019) ACOs’ strategies for transitioning to value-based care: Lessons from the Medicare Shared Savings Program. Report, U.S. Department of Health and Human Services, Washington, DC.Google Scholar
  • Chu HL, Liu SZ, Romeis JC (2002) Does the implementation of responsibility centers, total quality management, and physician fee programs improve hospital efficiency?: Evidence from Taiwan hospitals. Medical Care 40(12):1223–1237.CrossrefGoogle Scholar
  • Colla CH, Lewis VA, Tierney E, Muhlestein DB (2016) Hospitals participating in ACOs tend to be large and urban, allowing access to capital and data. Health Affairs 35(3):431–439.CrossrefGoogle Scholar
  • Cooper WW, Seiford LM, Zhu J (2011) Handbook on Data Envelopment Analysis (Springer, New York).CrossrefGoogle Scholar
  • DeLone WH, Mclean ER (1992) Information systems success: The quest for the dependent variable. Inform. Systems Res. 3(1):60–95.LinkGoogle Scholar
  • Dennis AR, Robert LP Jr, Curtis AM, Kowalczyk ST, Hasty BK(2012) Research note—Trust is in the eye of the beholder: A vignette study of postevent behavioral controls’ effects on individual trust in virtual teams. Inform. Systems Res. 23(2):546–558.LinkGoogle Scholar
  • Desanctis G, Monge P (1999) Introduction to the special issue: Communication processes for virtual organizations. Organ. Sci. 10(6):693–703.LinkGoogle Scholar
  • Gil-Garcia JR, Sayogo DS (2016) Government inter-organizational information sharing initiatives: Understanding the main determinants of success. Government Inform. Quart. 33(3):572–582.CrossrefGoogle Scholar
  • Gold J (2015) Accountable care organizations explained. Kaiser Health News. Accessed October 25, 2017, https://khn.org/news/aco-accountable-care-organization-faq/.Google Scholar
  • Hagland M (2018) At the health IT summit in Boston, one ACO’s data-facilitated journey into value. Accessed February 25, 2019, https://www.healthcare-informatics.com/article/value-based-care/health-it-summit-boston-one-aco-s-data-facilitated-journey-value.Google Scholar
  • Highfill T, Ozcan Y (2016) Productivity and quality of hospitals that joined the Medicare shared savings accountable care organization program. Internat. J. Healthcare Management. 9(3):210–217.CrossrefGoogle Scholar
  • Hollingsworth B (2008) The measurement of efficiency and productivity of healthcare delivery. Health Econom. 17(10):1107–1128.CrossrefGoogle Scholar
  • Hsu J, Price M, Vogeli C, Brand R, Chernew ME, Chaguturu SK, Weil E, Ferris TG (2017) Bending the spending curve by altering care delivery patterns: The role of care management within a pioneer ACO. Health Affairs 36(5):876–884.CrossrefGoogle Scholar
  • Huerta TR, Thompson MA, Ford EW, Ford WF (2013) Electronic health record implementation and hospitals’ total factor productivity. Decision Support Systems 55(2):450–458.CrossrefGoogle Scholar
  • Hult GTM, Ketchen DJ Jr, Slater SF (2004) Information processing, knowledge development, and strategic supply chain performance. Acad. Management J. 47(2):241–253.CrossrefGoogle Scholar
  • Hvenegaard A, Arendt JN, Street A, Gyrd-Hansen D (2011) Exploring the relationship between costs and quality: Does the joint evaluation of costs and quality alter the ranking of Danish hospital departments? Eur. J. Health Econom. 12(6):541–551.CrossrefGoogle Scholar
  • Im G, Rai A (2014) IT-enabled coordination for ambidextrous interorganizational relationships. Inform. Systems Res. 25(1):72–92.LinkGoogle Scholar
  • Izón GM, Pardini CA (2018) Association between Medicare’s mandatory hospital value-based purchasing program and cost inefficiency. Appl. Health Econom. Health Policy 16(1):79–90.CrossrefGoogle Scholar
  • Jamalabadi S, Winter V, Schreyögg J (2020) A systematic review of the association between hospital cost/price and the quality of care. Appl. Health Econom. Health Policy 18(5):1–15.Google Scholar
  • Jha AK, Orav EJ, Dobson A, Book RA, Epstein AM (2009) Measuring efficiency: The association of hospital costs and quality of care. Health Affairs 28(3):897–906.CrossrefGoogle Scholar
  • Joszt L (2019) NAACOS: ACOs saved Medicare $3.5 billion From 2013 to 2017. AJMC In Focus (Blog) (December 3), https://www.ajmc.com/view/naacos-acos-saved-medicare-35-billion-from-2013-to-2017.Google Scholar
  • Joynt KE, Jha AK (2013) A path forward on Medicare readmissions. New England J. Medicine 368(13):1175–1177.CrossrefGoogle Scholar
  • Kanawattanachai P, Yoo Y (2007) The impact of knowledge coordination on virtual team performance over time. MIS Quart. 31(4):783–808.CrossrefGoogle Scholar
  • Kane RL, Shamliyan TA, Mueller C, Duval S, Wilt TJ (2007) The association of registered nurse staffing levels and patient outcomes: systematic review and meta-analysis. Medical Care 45(12):1195–1204.CrossrefGoogle Scholar
  • Kazley AS, Ozcan YA (2009) Electronic medical record use and efficiency: A DEA and windows analysis of hospitals. Socio-Econom. Planning Sci. 43(3):209–216.CrossrefGoogle Scholar
  • Kazley AS, Diana ML, Ford EW, Menachemi N (2012) Is electronic health record use associated with patient satisfaction in hospitals? Health Care Management Rev. 37(1):23–30.CrossrefGoogle Scholar
  • Kellermann AL, Jones SS (2013) What it will take to achieve the as-yet-unfulfilled promises of health information technology. Health Affairs 32(1):63–68.CrossrefGoogle Scholar
  • Kleis L, Chwelos P, Ramirez RV, Cockburn I (2012) Information technology and intangible output: The impact of IT investment on innovation productivity. Inform. Systems Res. 23(1):42–59.LinkGoogle Scholar
  • Kumar S, Mital A, Pennathur A (2013) Human Work Productivity: A Global Perspective (CRC Press, Boca Raton, FL).Google Scholar
  • Landi H (2017) Medicare shared savings ACOs saved $1 billion over three years. Healthcare Informatics. Accessed October 25, 2017, https://www.healthcare-informatics.com/news-item/value-based-care/medicare-shared-savings-acos-saved-1-billion-over-three-years.Google Scholar
  • Levinson DR (2019) Using health IT for care coordination: Insights from six Medicare accountable care organizations. Report, U.S. Department of Health and Human Services, Washington, DC.Google Scholar
  • Lilienfeld SO, Ritschel LA, Lynn SJ, Cautin RL, Latzman RD (2013) Why many clinical psychologists are resistant to evidence-based practice: Root causes and constructive remedies. Clinical Psych. Rev. 33(7):883–900.CrossrefGoogle Scholar
  • Lowell KH (2018) Next generation accountable care organization (NGACO) model evaluation. Report, NORC at the University of Chicago, Chicago.Google Scholar
  • Majchrzak A, Malhotra A, John R (2005) Perceived individual collaboration know-how development through information technology–enabled contextualization: Evidence from distributed teams. Inform. Systems Res. 16(1):9–27.LinkGoogle Scholar
  • Martini G, Berta P, Mullahy J, Vittadini G (2014) The effectiveness–efficiency trade-off in healthcare: The case of hospitals in Lombardy, Italy. Regional Sci. Urban Econom. 49(November):217–231.CrossrefGoogle Scholar
  • McCallion G, Colin Glass J, Jackson R, Kerr CA, Mckillop DG (2000) Investigating productivity change and hospital size: A nonparametric frontier approach. Appl. Econom. 32(2):161–174.CrossrefGoogle Scholar
  • McClellan M, Mckethan AN, Lewis JL, Roski J, Fisher ES (2010) A national strategy to put accountable care into practice. Health Affairs 29(5):982–990.CrossrefGoogle Scholar
  • McWilliams JM, Landon BE, Chernew ME, Zaslavsky AM (2014) Changes in patients’ experiences in Medicare accountable care organizations. New. England J. Medicine 371(18):1715–1724.CrossrefGoogle Scholar
  • McWilliams JM, Hatfield LA, Chernew ME, Landon BE, Schwartz AL (2016) Early performance of accountable care organizations in Medicare. New England J. Medicine 374(24):2357–2366.CrossrefGoogle Scholar
  • Merlino JI, Raman A (2013) Healthcare’s service fanatics. Harvard Bus. Rev. 91(5):108–116.Google Scholar
  • Nattinger MC, Mueller K, Ullrich F, Zhu X (2018) Financial performance of rural Medicare ACOs. J. Rural Health 34(1):98–102.CrossrefGoogle Scholar
  • Newhouse JP (1970) Toward a theory of nonprofit institutions: An economic model of a hospital. Amer. Econom. Rev. 60(1):64–74.Google Scholar
  • Norton EC, Li J, Das A, Ryan AM, Chen LM (2021) Medicare’s Hospital Value-Based Purchasing Program values quality over QALYs. Medical Decision Making. ePub ahead of print May 27, https://doi.org/10.1177/0272989X211017105.Google Scholar
  • Premkumar G, Ramamurthy K, Saunders CS (2005) Information processing view of organizations: An exploratory examination of fit in the context of interorganizational relationships. J. Management Inform. Systems 22(1):257–294.CrossrefGoogle Scholar
  • Ravichandran T, Han K, Mithas S (2017) Mitigating diminishing returns to R&D: The role of information technology in innovation. Inform. Systems Res. 28(4):812–827.LinkGoogle Scholar
  • Reschovsky JD, Staiti AB (2005) Access and quality: Does rural America lag behind? Health Affairs 24(4):1128–1139.CrossrefGoogle Scholar
  • Senot C, Chandrasekaran A, Ward PT, Tucker AL, Moffatt-Bruce SD (2016) The impact of combining conformance and experiential quality on hospitals’ readmissions and cost performance. Management Sci. 62(3):829–848.LinkGoogle Scholar
  • Shortell SM, Casalino LP, Fisher ES (2010) How the Center for Medicare and Medicaid Innovation should test accountable care organizations. Health Affairs 29(7):1293–1298.CrossrefGoogle Scholar
  • Shreay S, Ma M, Mccluskey J, Mittelhammer RC, Gitlin M, Stephens JM (2014) Efficiency of US dialysis centers: An updated examination of facility characteristics that influence production of dialysis treatments. Health Services Res. 49(3):838–857.CrossrefGoogle Scholar
  • Silow-Carroll S, Edwards JN, Rodin D (2012) Using electronic health records to improve quality and efficiency: The experiences of leading hospitals. Issue Brief (Commonwealth Fund) 17:1–40.Google Scholar
  • Srinivasan R, Swink M (2015) Leveraging supply chain integration through planning comprehensiveness: An organizational information processing theory perspective. Decision Sci. 46(5):823–861.CrossrefGoogle Scholar
  • Stensland J, Akamigbo A, Glass D, Zabinski D (2013) Rural and urban Medicare beneficiaries use remarkably similar amounts of healthcare services. Health Affairs 32(11):2040–2046.CrossrefGoogle Scholar
  • Terza JV, Basu A, Rathouz PJ (2008) Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling. J. Health Econom. 27(3):531–543.CrossrefGoogle Scholar
  • Tiemann O, Schreyogg J (2012) Changes in hospital efficiency after privatization. Health Care Management Sci. 15(4):310–326.CrossrefGoogle Scholar
  • Toussaint J, Milstein A, Shortell S (2013) How the pioneer ACO model needs to change: Lessons from its best-performing ACO. JAMA 310(13):1341–1342.CrossrefGoogle Scholar
  • Wani D, Malhotra M (2018) Does the meaningful use of electronic health records improve patient outcomes? J. Oper. Management 60(May):1–18.CrossrefGoogle Scholar
  • Wooldridge JM (2010) Econometric Analysis of Cross section and Panel Data (MIT press, Cambridge, MA).Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.