A hospital system is rewarded with higher profits in the short term when it implements electronic health records which increase the timeliness of physician and patient communication.

Question

Quizplus · Accepted Answer

While it is possible that a hospital might realize higher patient revenues in the long term if it increases its quality of service in the area of communication, it is unlikely that an investment in electronic health records would result in a short term return. Further, the idea of a hospital realizing a "profit" is questionable. Most hospitals are "not for profit" institutions, which brings into question the maximizing goal of the hospital. This highlights the difference between hospitals and the neoclassical profit-maximizing firms.

A Hospital System Is Rewarded with Higher Profits in the Short