The role of hospitals and physicians in technology diffusion

Hospitals and physicians play pivotal roles in the diffusion of health care technology because they, for the most part, are the owners and operators of medical equipment. At the same time, the way in which technology spreads through the health care community has an impact on the number of patients seen, and revenue earned, by hospitals and physicians. This synergistic relationship has been subjected to new forces with the ongoing development of new technologies and the reduction of insurers' generous cost reimbursements. "Competition" is the rallying cry about which much of this change has grown. Medicare's prospective payment system, federal and state cost-containment activities, and an increase in the number of alternative health care providers continue to incite competitive activities among hospitals and physicians as they vie for patients. To survive financially today, hospitals and physicians must have a clear understanding of the health care technology environment in which they function. Only then can a strategic plan be designed that identifies the tactics that would enable the hospital or physician not only to compete, but to succeed, in the battle to offer high-quality services that attract patients.