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2017 International Conference on Management Science & Engineering (24th)

August 17-20, 2017 Nomi, Japan

The Impacts Mechanism of Controlling System in Hospital on Quality of Care:


from Process and Outcome Perspectives
ZHANG Xiang-qunˈLI YanˈWU Xing-hanˈGUO Xi-tong
School of Management, Harbin Institute of Technology, P.R,China, 150001

 Additionally, when physicians can’t fulfill the contents of


Abstract: Considering complex environment of
hospital, the implementation of information systems patients in HIS accurately and timely, undesirable
occurs lots of obstacles which impairs its effectiveness outcomes will be accumulated in system in course of
and efficiency in medical process. In other words, there time. Thus, hospital administrators have to consider the
exists lots of poor interactions between human and effect of IT employees performance according to IT
information system use, such as the overload work affordances including offering communication tools to
volume and medical errors resulting from inappropriate increase productivity, efficiency, and quality.
behavior with new technology. Thus, we use quality Additionally, hospital administrators must consider both
control system, an augmented system of electronic the differences of various systems and their various
medical records, to explore the complementary impacts impacts on patients.
of information system to enhance the effectiveness of As the main system in hospital, electronic medical
information system us. Our study extracted physicians' record (EMR) plays critical roles in improving quality of
scores evaluated by the controlling system automatically care in hospital (Sharma, Chandrasekaran, Boyer, &
at a large urban hospital in China. To examine McDermott, 2016; Xiao et al., 2012). However, in
relationship between controlling system and healthcare addition to this main stream system in hospital,
organizational outcomes, we construct the fixed effect augmented systems are also important to various
model. Our results reveal an interesting progression over organizational environment. (Sharma et al., 2016).
time in how process standardization forming from Therefore, referring to the impacts of information
controlling system affects physician performance and systems in hospital, controversy till exists since the
patient benefits. Our findings contribute to both complex interaction between human and system diversity,
theoretical and practical Implications, in particular the such as the insignificant influence (Agha, 2014). As a
new insight of behavior change in healthcare and policy strategy, quality improvement can help organizations
directions. attain a competitive advantage, such as higher reputation
Keywords: Quality control system, Process quality, and profitability[4]. Thus, for most of hospitals,
Outcome quality, Hospital Information Systems improvement of quality takes more than other
performance, such as patient satisfaction[5]. Moreover,
1 Introduction quality control system in hospital provides a procedure
for hospital quality monitoring which reduces errors by
Overload work is common in Chinese top three removing illegible orders, facilitating communication,
hospitals[1]. In order to mitigate this situation, many promoting the tracking of orders, screening for
countries invest money in hospital information system inappropriate orders, and alerting agents of actions to be
(HIS). However, in a practical application, there still undertaken[6]. Based on them, we pose the following
various problems mainly concentrated on the interaction question.
between human and computer[2]. To some extent, Does quality control system in hospital change the
efficiency and quality was enhanced by this investment physician behavior and improve the quality of care?
of information system[3], controversy still exists. In other Considering the imbalance between effective uses
words, on the contrary, human-computer interaction put of information system and increasing workflow also
extra pressure on agents in hospital, for example, resulted from information system, we leverage this gap
physicians will spend time on typing patient records to evaluate the impact of hospital information system, in
especially when they have lower computer literacy. particular the impacts of quality control system which
limits physicians’ behavior in hospital. To test this
relationship, we constructed an empirical model by
The support of this study is from the National Natural theorizing the relationship between information system
Science Foundation of China Grants (71531007, and behavior change, and service quality. Then, we used
71471048, and 71471049).

978-1-5386-137/17/$31.00 ©2017 IEEE


fixed effects model and included control for relevant performance. Moreover, it is noted that quality is one of
observables (e.g., workloads, environment factors) to the most important factors in service which is also a
estimate these impacts. Since one dimension will lead to foundation of competitive advantage. Service operators
evaluation bias, we disentangled the variation of impacts in hospitals often evaluate the service quality provided to
from different types of variables, in particular the process their patients for improving their service, quickly
and outcome variables. Furthermore, we collected our identifying the problems, and better evaluating patients’
data from a large hospital in China to support our study. satisfaction. As universally accepted, high patient
According to the results, we found that quality control satisfaction is associated with better health outcomes,
system benefits both the effectiveness and efficiency of service quality has close relation with medical
IT implementation. However, the impacts on process quality[17]. Some studies confirm that service quality has
variables are less significant than outcome variables. five dimensions including medical service, admission,
This contributes to the literature of information system discharge, overall service and social responsibility[18].
impacts in healthcare, also promotes to better economic Thus, according to above, the setting of higher levels of
and policy literature evaluating the impact of behavior service quality in hospital will along with a higher level
change according to our post-hoc analysis. In practical, of patient satisfaction and also behavior tendency.
our work gives support to the hospital reform related to Improvements in medical quality are clearly critical
information system. elements of the value expected from quality control
systems[19]. Several studies found that quality
2 Research Background and Literature management is positively associated with the medical
Review quality. The medical quality in these studies include
reduce of mortality rates[20], improving vaccination
2.1 Information Systems in Hospitals rates[21], increasing the adoption of recommended
Information systems provide an important support procedures[22],and patient safety[23]. Information system
for hospitals of highly specialized medical tasks and sometimes take roles of technical process management,
services[7]. It has varieties of affordances in medical such as adherence to systems which are standardize and
process, including monitoring[8], controlling[9], decision operationalize that changes the agents’ behavior (Angst,
supporting[10] etc. Monitoring system is that gives Devaraj, & D’Arcy, 2012). Providing digital input
behaviors tracking and recording as documents to keep functions as well as information supports to normalized
the continuous of medical records[11]. Controlling system traditional medical process, information system in
offers reminders for physician, which reduces mistakes hospital are promoted for their potential to assist
by oblivion significantly[12]. Decision support system caregivers’ work and improve clinical processes (Bates et
uses technology to connect the standard databases and al., 1999). As a controlling system aiming to frame
standard process, quality control system changes
help caregivers’ decision-making[13]ˈit can provide more
physician’s existing routines and influences the direct
advanced therapeutic schedule to patients.
process performance. Thus, controlling system enables
As a part of EMR, Quality Control System plays an
operations affects their perceptions about system’s
important role in complementing the drawback. Such as
impact in terms of improving process quality. Based on
the overload work resulting from inappropriate usage.
the preceding discussion, we present our first set of
The quality control system will remind physician to input
hypotheses relating to impacts of the quality controlling
patients’ information timely. If the physician show
system on the patients. Thus, we hypothesize:
noncompliance, the system will inform monitor who can
Hypothesis 1 (H1): Quality control system
give physician a warning or record in performance.
positively affects the process quality in healthcare.
Quality control system use standard medical process to
Outcome refers to the end points of quality of care, such
change caregivers’ behavior, including content and time.
as the improvement in health condition or survival.
In that, content mainly focuses on several parts, such as
Outcome variables are usually concrete and precisely
diagnosis, records of ward-round, electronic medical
measured. Empirical evidence is significant in extant
records, medical advice and so on, while time focuses
research that the different types of information system
more on timetable of fulfilling information above, which
plays critical roles on patient health outcomes, such as
could help caregivers improve adherence standard,
reducing mortality rate (Myers, Hubbard, Shaheen,
medical process and improve patient health outcomes[14].
Dixon, & Kaplan, 2012), enhancing recovery status,
Monitoring the records of ward round by a quality
reducing readmission (Ayabakan, Bardhan, & Zheng,
control system has been argued that it can improve the
2016). Referring to controlling system, it benefits for
patient outcomes[15], also the ward round quality[16]. Then
several reasons. On one hand, complying with the system
physician can fulfill a task smoothly.
reminder will avoid and reduce the possible of risk and
uncertainty during the treatment period. For example,
2.2 Service Quality Theory
when the patient is emergency, controlling system will
As defined before, service quality refers to the
guarantee that this patient has complete clinical test
outcome of an assessing process depending on the
which will find the problems immediately when they
comparison between consumers’ expectations and actual
come to the hospital. On the other hand, adherence to the


standard medical process will mitigate the overload work to avoid the sample bias. The description of data is
of physicians to some extent and distract the work to presented in Table 1.
several chips. Furthermore, they can have spare more on
diagnosing and communicate with patients. For example, Table 1. Summary Statistics (Observation=207)
they can write medical records every day per case, not
Variables Mean S.D. Min. Max.
delay to the last time when patients leave the hospital.
Based on this process, outcomes will be improved by Department 12 6.65 1 23
complying with system process, and we put forward our Evaluation Score 870 88 592 1157
hypotheses.
Hypothesis 2 (H2): Quality control system Length of stay 10.90 4.23 2.07 32.92
positively affects the outcome quality in healthcare. Mortality Rate 0.02 0.02 0 0.12
Cured Rate 0.35 0.34 0 1
3 Methodology
Recovery Rate 0.95 0.06 0.75 1
3.1 Data Setting Patient Numbers 37.95 28.53 0 142
Data collection. We collected data from a large Switching-in (%) 0.028 0.034 0 0.17
hospital in China that had applied quality control system
for couples of years. This is the first time they implement Readmission (%) 0.92 0.14 0.58 1.52
such systems to control the medical quality. Our data Undiagnosed (%) 0.05 0.06 0 0.27
collection had two parts. First, the authors have several
Switching-out Rate 0.03 0.03 0 0.15
discussions with physicians and managers in this hospital
since one of the author is the management employee in Bed Utilization (%) 90.08 27.25 4 154.19
this hospital. The examples applied into the illustration
about the impact of quality control system on the 3.2 Model Specification
doctor’s behavior are abstracted from these interviews We performed natural logarithm transformations on
and the real practical problems during hospital all variables to endorse the assumption of normality.
management. Second, the data was sourced from three Moreover, we used ordinary least square regression
datasets including first page of patients’ medical record, (OLS) to test our hypotheses, variables have introduced
outcomes on patients’ perspective, comprehensive in data section. However, the rate ranges from 0 to 1
evaluate result for medical care of basic section, and which do not belong to the normal distribution and is
monthly statement of basic section, ranging from inconsistent with basic assumption of OLS, so we used
2015/11 to 2016/06. fractional logit regression model to examine the impacts
Dependent variables. We extracted time-series data on dependent variables related to rate. Furthermore, to
on patient admission length and defined it as process examine how quality system affects quality of care, we
variable, cured rate, recovery rate, mortality rate as use panel data and a fixed effects regression model as
outcome variables. This data was extracted from patient follow:
discharge reports based on individual level. We ServiceOutcomeit = As + b * Log (ServiceQuanlityit)
aggregated these into department level by calculating the + d * Cst + eit
average number. The patient discharge reports include Here, ServiceOutcomeit is the patient outcome
patients’ basic admission statement and related time variable for a department i at time t which indicates the
which supports the hypotheses of process and outcome discharge status when they leave the hospital for any
variables as the measurements of medical quality. reasons. ServiceQuanlityit captures the average scores of
Independent Variables. We calculated the department i at time t. As refers to the department fixed
evaluation scores from department level. As the results of effects. And Cst is the department control variables.
system generated information, evaluation scores are the Above all, the department level fixed effects controls for
average physician score of every department which time-invariant differences across departments. The
measures the physician adherence behavior to system inclusion of these fixed effects makes each department in
from time and content perspectives. The scores were a given month comparable to any other department at
extracted from quality control system which marks other time periods. Additionally, there are other factors
automatically when users make errors, the system will influencing the time-serious variation of impacts, in
report the final scores every month per department. other words, the fixed effects cannot be the only
Control Variables. We extracted the patient number, measurement. To explain for these effects, several
switching-out number and bed utilization rates from control variables Cst are included in the model
medical monthly report. Medical monthly report is a specification in order to control the effects from the
traditional way to measure the medical quality which factors that vary within each department over time.
reflects the medical performance from organizational Description of these control variables have been
perspective. Thus, we can obtain statistic data from it as delineated earlier in the data section. Additionally, the
control variables in this study. Additionally, we also error terms are clustered at the department level to
consider the economics factors and other extrinsic factors account for autocorrelation in the data (Bertrand, Duflo,


Table 2. Results of Model
Dependent Variable: Dependent Variable:
Variables
Procedural: Length of Stay Outcome: Cure Rate
Evaluation Score -0.787***(0.189) 2.023**(1.208)
Initial Patient Numbers -0.043(0.078) -0.421***(0.143)
Bed Utilization Rate -0.002**(0.001) -0.022***(0.005)
Readmission Rate 0.340**(0.144) 1.346(0.889)
Undiagnosed Rate 0.433(0.334) -7.163***(2.466)
Diagnose Uncertainty Rate 0.327(0.602) -2.093(3.061)
Switching-out Rate -0.390(0.542) -5.336(3.943)
Switching-in Rate 1.170**(0.579) -1.033(4.291)
Intercept -11.626(8.091)
R-Squared 0.183 0.383
Sample Number Balanced Panel: n=23, T=9, N=207

& Mullainathan, 2004). Observations are at the hypotheses we have before. We use these two-replaced
department-month level based on the monthly medical outcome dependent variables, recovery rate and mortality
reports across all in-sample patients admitted to this rate from our data, in that these are also two dependent
hospital. Accordingly, there are 207 observations in total variables which can reflect the patient status when they
and united in balance panel data for 23 departments of 9 leave the hospital. The robust results are represented in
periods. Table 3 which are all significant and consistent with
results before. In other words, according to the robust
4 Results test, the impacts on outcome variables are still more
significant than process variables during the medical
4.1. Main Results process
There are two dependent variables including
procedural measurements and outcome measurements. 5 Discussion
The results of the fixed model are presented in Table 2.
Procedural measurements. The results of the model This study aims to examine how subsystem aiming
measuring procedural variables indicate that quality to control user behavior during medical process and
control system has a significantly (p < 0.001) negative effects from the different types of quality of care.
relationship with the procedural variables, thereby Drawing on the literature in hospital information system,
supporting hypotheses H1. Since we use average length service quality, and leveraging a unique dataset with
of stay to measure the impact of system, the results are time-variation that through multiple departments and
negative and consistent with models which indicates the multiple time periods, we empirically explore the
decreasing of stay length in hospital. Outcome interplay between the quality control systems and two
measurements. The results of the outcome type’s quality of care. According to the results of models,
measurements model suggest that quality control system our study has following conclusions. First, controlling
has a significantly (p < 0.001) positive relationship with system can improve medical quality even though it limits
the procedural variables, thereby supporting hypotheses the physician behavior. Previous research showed the
H2. Since we use cure rate to measure the impact of potential of monitoring system in hospital rather than
system, the results are positive and consistent with controlling system because of the resistant emotion
models which indicates the increasing trends of cure rate towards new technology and some habits (Aron, Dutta,
in hospital. Janakiraman, & Pathak, 2011). Contrarily, our study
gives strong support to the benefits from controlling
4.2. Robustness Checks system which provides new insight for both theoretical
In this section, we run the robustness checks of and practical perspectives. Moreover, it is an incentive
main results with respect to alternative variables of way for physicians to improve adherence of system.
dependent variables. Since we leverage the analysis Second, controlling system improves both process
based on the department level and the patients’ status are quality and outcome quality. Previous research explored
different in diverse departments and situations, we take a the impacts on quality of care (Miller & Tucker, 2009),
replace dependent variables to keep that our analysis is also the impacts of surveillance, prevention, and control
robust. Since the results of comparing is opposite to system (Atreja et al., 2008). Our study puts forward a


Table 3 Results of Robustness Checks
Dependent Variable
Variables
Recovery Rate Mortality Rate
Evaluation Score 2.290***(0.667) -2.534**(1.025)
Initial Patient Numbers -0.146(0.114) 0.245(0.152)
Bed Utilization Rate -0.000(0.004) 0.020***(0.006)
Readmission Rate 0.814(0.666) -1.357(0.960)
Undiagnosed Rate 1.142(1.351) -0.717(1.674)
Diagnose Uncertainty Rate -2.004(2.415) -1.361(3.139)
Switching-out Rate 1.104(3.596) 8.664*(5.166)
Switching-in Rate -1.177(3.194) 0.794(4.813)
Intercept -12.827***(4.377) 11.120(63987)
R-Squared 0.05 0.121
Sample Number Balanced Panel: n=23, T=9, N=207

new insight to measure the medical quality. Third, Third, we posit different types of variables.
comparing with outcome quality, the impacts of Previous research shows the different results in one
controlling system on process quality has less significant dimension. Our findings answer the questions about the
results but more on outcome variables which means the mechanism of effectiveness and efficiency related to
reflection of the new technology may be more obvious clinical information system and extend the exploration of
on outcome variables. This may have some reasons. this process. Specific classifications will help us better
When we discuss about process quality, it is sometimes a understand the impact and controversy results from
two-side sword. The outcome variables may have more previous research.
directly effects from variations about work process. Then, Practical Implications. First, recent study pointed
we explain the theoretical and material implications of out the importance to implement information system into
this research in the following, hospital and also the severe budget constraints and
increasing workflow for caregivers. Our findings make it
5.1. Theoretical and Practical Implications clear that the implementation of controlling system will
Theoretical Implications. First, we extend the benefit the organizational performance even though it
literature of hospital information system. Recent research limits the behavior of physicians and changed it. Thus,
in information system domain relied on causality considering the low costs of this subsystem, hospitals can
relationship from economics to explore how the interplay consider to adopt it as the way to mitigate the drawbacks
between information systems and participants help from other influences.
promote organization’s performance. Similarly, we Second, limited value of outcome variables on
demonstrate that the controlling system changes the quality of care. Our findings show the priority of
interaction ways and operation patterns among agents in outcome variables. This will give directions for
healthcare environments, also changes the work style as management to use different system measuring the
before. In other words, the controlling system different index. One of the functions related the
complements the overload work resulting from the information system implemented in hospital is to statistic
inappropriate implementation of information system. the data and give reports to evaluate organizational
Thus, the implication is that the controlling system performance. Our work contributes to motivate
enhances the value of the other clinical information management be more focus on corresponding index and
system. enlarge the impacts.
Second, we extend the search of different types of
subsystem in hospital, in particular the role of quality 5.2. Limitations and Future Research
control system in hospital. Current research on Although this study helps us to better explain the
controlling system and the impact on quality of care specific effects of controlling system on quality of care,
posits that comparing with controlling, monitoring in it is not without the limitations. This study used data
organizations related to the activities of doctors’ behavior from department level which is still from the
in hospitals is more valuable (Aron et al., 2011). Our organizational perspective not individual perspective.
findings reveal the positive impacts of quality controlling However, it is better to measure the impacts from
system which tests the roles in turn and posits new individual level when it comes to the behavior change. In
research about different types of information system in other words, the average calculation will lead to some
hospital. bias of test. This motivates to the further research by


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