Assessing IT effects on performance of hospital production process that directly involves IT in its activities is considered to be more appropriate than measuring IT effects on performance measures at the enterprise level such as profitability and return on asset. This is because the link between IT investment and organizational performance measures tends to be diluted due to the effects of many other unidentified mediating and moderating variables. Using regression analysis to evaluate IT effects also has the advantage of not requiring the direction of IT impacts on the efficiency scores to be specified in advance. The sign of the coefficient will indicate the direction of the influence, and standard hypothesis testing can be used to assess the strength of the relationship