Private hospitals, on the other hand, face pressures from firms, insurance companies
and households to become more cost efficient. Rannan-Eliya (1995) found that 56 percent
of total health spending was utilized by private sector providers. In 2005, World Health
Organization reported that private expenditure on health constitutes 62 percent of
total health care expenditure. Moreover, private hospitals in Egypt struggled to remain
profitable at 60-70 percent occupancy rates (Gericke, 2004). Thus, improved quality of
health care was crucial for survival in this changing environment (Zineldin, 2006). The
privatization and reform of the healthcare sector in Egypt has also resulted in increased
competition in the Egyptian market. As such, effective implementation of information
systems should improve organizational performance, since better information used is
expected to lead to better decision making (Seliem et al., 2003).