Dynamic Capabilities in Home Health: IT-Enabled Transformation of Post-Acute Care

Home health care can enable shorter hospital stays, reduce re-hospitalization, and contribute to lowered out-of-hospital morbidity and mortality. However, recent changes in Medicare payments and regulations in the US have challenged home health care providers' business models. Against this back...

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Bibliographic Details
Published inJournal of the Association for Information Systems Vol. 12; no. 2; pp. 163 - 188
Main Authors Singh, Rajendra, Mathiassen, Lars, Stachura, Max, Astapova, Elena
Format Journal Article
LanguageEnglish
Published Atlanta Association for Information Systems 01.02.2011
Subjects
American Recovery & Reinvestment Act 2009-US
Clinical outcomes
Costs
Health care delivery
Health services
Home health care
Hospitals
Information systems
Information technology
Medicare
Mortality
Patients
Prospective payment systems
Qualitative research
Reimbursement
Strategic management
Studies
Subacute care
Technological change
Telemedicine
United States > US
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Summary:Home health care can enable shorter hospital stays, reduce re-hospitalization, and contribute to lowered out-of-hospital morbidity and mortality. However, recent changes in Medicare payments and regulations in the US have challenged home health care providers' business models. Against this backdrop, we draw on the dynamic capability perspective to examine how one home health care provider responded to this challenge over the period 2000-2009 by combining adaptive organization principles and information technology (IT) to transform its post-acute care delivery. The transformation leveraged the organization's existing dynamic capabilities; improved nursing practices; engaged physicians, nurses, managers, and patients; and implemented remote patient monitoring and other IT-enabled innovations. Integrating information systems and health services literatures, we identify the processes targeted by the transformation, analyze how the provider built adaptive care delivery capability enabled by IT, and demonstrate how the transformation led to improved clinical and financial outcomes. In addition, we offer new insights into the micro-foundations of dynamic capabilities by distinguishing between capabilities at the transactional and transformational levels, and explaining how different types of IT-enabled capabilities shaped, and were shaped by, the home health care provider's responses to environmental changes. [PUBLICATION ABSTRACT]
ISSN:1536-9323
1536-9323
DOI:10.17705/1jais.00257