Characteristics of hospitals that outsource information system functions

Despite the increasing trend among hospitals to outsource information system functions, little is known about these decisions in the acute-care setting. This study examined the outsourcing behavior of hospitals in Florida to determine the characteristics of hospitals that are most likely to outsource IS functions. In addition, the results provide an overview of which IS functions are most commonly outsourced in hospitals. Overall, survey responses from 98 hospitals indicate that the outsourcing of IS functions is more common in small hospitals and those in rural areas. Another important predictor of IS outsourcing behavior was the degree to which an organization placed a strategic importance on IS in its operations. Outsourcing behavior did not seem to be systematically related to the CIO reporting structure. However, having a physician in a senior level IT position did seem to correlate. Lastly, the data indicate that a hospital's profit status is not generally related to IS outsourcing.