Factors Affecting Outsourcing for Information Technology Services in Rural Hospitals: Theory and Evidence
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As health information technology becomes more prevalent for most healthcare facilities,
hospitals across the nation are choosing between performing this service in-house and
outsourcing to a technology firm in the health industry. This paper examines factors
affecting the information technology (IT) outsource decision for various hospitals. Using
2004 data from the American Hospital Association, logistic regression models find that
governmental ownership and a proxy variable for hospitals that treat more severe injuries
positively impact the probability of outsourcing for IT services.