Electronic medical records and cost efficiency in hospital medical-surgical units

Michael F. Furukawa, Raghu Santanam, Benjamin Shao

Research output: Contribution to journalArticlepeer-review

25 Scopus citations


This study examines the impact of electronic medical records (EMRs) on cost efficiency in hospital medical-surgical units. Using panel data on California hospitals from 1998 to 2007, we employed stochastic frontier analysis (SFA) to estimate the relationships between EMR implementation and the cost inefficiency of medicalsurgical units. We categorized EMR implementation into three stages based on the level of sophistication. We also examined the effects of specific EMR systems on cost inefficiency. Our SFA models addressed potential bias from unobserved heterogeneity and heteroskedasticity. EMR Stages 1 and 2, nursing documentation, electronic medication administration records, and clinical decision support were associated with significantly higher inefficiency.

Original languageEnglish (US)
Pages (from-to)110-123
Number of pages14
Issue number2
StatePublished - 2010

ASJC Scopus subject areas

  • Health Policy


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