ABSTRACT
In a productivity study, a behavioral model is ascribed to all firms in the sample and estimates of parameters are determined which best fit the model. The possibility of mismanagement in Information Systems has been often cited and the limitations of deterministic approaches in information technology (IT) business value measurement are criticized by Soh and Markus. The parameter estimate reflecting the impact of IT labor shows a negative contribution to the productivity of hospitals. The lower productivity of teaching hospitals probably indicates a tendency to overutilize labor and capital in order to train physicians and interns, thereby resulting in lower productivity from resource utilization. Because my model rather myopically considers only one objective, cost minimization, and only one output, revenues, one cannot infer how productively teaching hospitals achieve a different set of goals, namely providing healthcare services and.
