The Effects of Organizational Factors on Healthcare IT Adoption Costs: Evidence from New York Nursing Homes

We investigate how organizational factors influence healthcare IT adoption costs, using new data collected from an EMR adoption experiment conducted in a sample of New York State nursing homes. We find that workplaces characterized by higher levels of employee satisfaction and employee discretion incur lower EMR implementation costs. Our estimates suggest that nursing homes that are one standard deviation above the mean in terms of employee satisfaction and employee discretion measures incur about 10% lower EMR adoption costs than average facilities. Implications for policy makers and managers are discussed.