ABSTRACT

Overview Important differences between the financing structures of not-for-profit hospitals and for-profit hospitals lead them to be equipped differently in their services, use of capital, and mission to provide quality healthcare while cutting costs. The new dimension to this dynamic is the introduction of health information technology (HIT) to hospitals, such as electronic medical records, during this period of healthcare reform. It is possible that HIT could help or hinder, depending on the type of hospital, ease of usage, prediction of its return on investment, and more. The technological performance at a hospital can be based on how easily hospitals will be able to finance and incorporate technology in their infrastructure. For this reason, a study on the literature of health information technology and its impact on some of the important features that contribute to hospital financing, including tax exempt or tax paying status of a hospital, ownership, management, and compensation, as well as mergers and acquisitions, is key to the study of different types of hospitals and their ability to adjust to technological change.