Modeling practice efficiencies in using healthcare information exchanges and implications for hie network growth

Health Information Exchange (HIE) systems may not deliver their promised benefits unless used in a meaningful and carefully adopted way. We develop an analytical model to measure the enhancement in the efficiency of healthcare providers enabled through the use of HIE systems. We test our model based on a panel data set of HIE system logs over a period of 30 months. We show that the relative value of HIE services, as well as competition and labor inputs are highly affecting the use of HIE among different practices. Our proposed method for measuring efficiency has direct implications on studies on HIE adoption, usage and outcomes. Our research findings provide important guidelines on triggers that enhance the overall use of HIE.