Health Information systems capabilities and Hospital performance – An SEM analysis

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The evaluation of the value generated by IT applications in general and hospital IT/IS, in particular, is an essential aspect of the research within the IS discipline. IT investment and IS capability as its functional manifestation can help improve the performance of hospitals. However, the estimated and expected efficiencies and improvement in care quality remain evasive and have yielded mixed evidence. One key finding that emerges from the research is that IT does bring value to organizations, but not in isolated cases. Instead, IT can create a synergic relationship that improves business performance by creating a process in an organization when coupled with organizational factors. We introduce hospital function efficiency as an intermediate business process that mediates HIT and hospital performance. Thus, our research investigates the impact of HIT capabilities on hospital quality of care through the hospital functional efficiency as a mediating variable using a structural equational modeling approach.