Previous works concerning the effect of IT on hospital efficiency rely on both anecdotal and
empirical evidence. Stollman, Matthews, and Cline (2002), in his case study, found that hospital
efficiency and financial performance could be improved by introducing IT for San Francisco General
Hospital. Parente and Dunbar (2001), in their empirical work, found that hospitals with the integrated IT
system have higher total and operating margins compared with hospitals without the integrated IT
system. Solovy (2001) showed that, for U.S. hospitals, IT had stronger relationship with productivity
and expense management for hospitals with intensive use of IT compared with hospitals that were less
IT intensive.