Relationships Among Administrative Computerization, Hospital Size, and Administrative Expenses

Relationships Among Administrative Computerization, Hospital Size, and Administrative Expenses by Pamela J. Gallagher MBA, City University of Seattle, 2005 BSBA, Thomas Edison State College, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University February 2016 Abstract The healthcare industry is computerizing administrative functions in an attempt to reduce expenses and remain competitive. This correlational study of 3,088 Medicare-certified, short-term, acute-care hospitals in the United States was based on a general systems theory framework; it sought to examine the relationships among the independent variables of hospital size and administrative computerization and the dependent variable of administrative expenses. Secondary data from Health Information Management Systems Society’s surveys and cost reports from the Centers for Medicare and Medicaid services were used. Correlation analyses with an alpha of . 05 were used to test 3 of the 4 hypotheses; regression analysis was used to test the final hypothesis. Approximately 52% of the variance in administrative expenses was explained by the number of beds, a moderate-to-high relationship. Only 6.3% of the variance in administrative expenses was explained by the amount of administrative computerization, a significant but small relationship. Only 9% of the variance in administrative computerization was explained by the hospital size, a significant but small relationship. The results of this study can be usedThe healthcare industry is computerizing administrative functions in an attempt to reduce expenses and remain competitive. This correlational study of 3,088 Medicare-certified, short-term, acute-care hospitals in the United States was based on a general systems theory framework; it sought to examine the relationships among the independent variables of hospital size and administrative computerization and the dependent variable of administrative expenses. Secondary data from Health Information Management Systems Society’s surveys and cost reports from the Centers for Medicare and Medicaid services were used. Correlation analyses with an alpha of . 05 were used to test 3 of the 4 hypotheses; regression analysis was used to test the final hypothesis. Approximately 52% of the variance in administrative expenses was explained by the number of beds, a moderate-to-high relationship. Only 6.3% of the variance in administrative expenses was explained by the amount of administrative computerization, a significant but small relationship. Only 9% of the variance in administrative computerization was explained by the hospital size, a significant but small relationship. The results of this study can be used as a basis to determine whether investment in technology in administration will reduce health care expenses. Appropriate investment in technology can contribute to social change by reducing consumer health care costs. Relationships Among Administrative Computerization, Hospital Size, and Administrative Expenses by Pamela J. Gallagher MBA, City University of Seattle, 2005 BSBA, Thomas Edison State College, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University February 2016 Dedication Dedication to family, whether through blood or choice, including those who passed before. We are all part of a continuing cycle, to leave each day better than the one before. Acknowledgments This journey has been a team effort. Dr. Diane Dusick provided unwavering support and inspiration and I deeply appreciate her wisdom and time that made it possible for me to complete my study. Dr. Jorge Gaytan provided valuable feedback and showed a deep respect for my time by being so responsive. Dr. Charlotte Carlstrom helped expand my thinking and thus improved my overall study. Dr. Freda Turner could be counted on for words of encouragement. Thanks to my family and friends who supported me and are extremely pleased, I have finished my study and they will no longer have to field requests to read this section or listen to this part. Thanks to the Walden Faculty, Library and Writing Center staff, and my colleagues at Walden who were intricate parts of my successful journey. It has been a privilege. Table of