IT adoption in hospitals : social networking, governance and the clockspeed of change

The healthcare industry is expanding swiftly and total healthcare expenditures are expected to reach 18% of GDP by 2008. However there exist steep variances in quality of care and high incidences of medical error. This has given impetus to efforts at progressively evolving the healthcare delivery system. The role of information technology (IT) is seen as being central to cost reduction and quality improvement of healthcare delivery. Furthermore, efficiency gains will realize approximately 20% in cost reductions. However, there are significant challenges associated with widespread adoption of IT by healthcare providers. Despite the existence of vendor and technology maturity, implementation rates for clinical patient record systems were only 35% in 2006. This study addresses the problem of low IT adoption in hospitals through a three pronged analysis methodology. A Clockspeed analysis has revealed a dichotomy between the maturity levels of technology and vendors on the one hand and delivery processes on the other. This has resulted in lower business value being realized from IT investments by healthcare providers.