{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,4,30]],"date-time":"2026-04-30T00:26:35Z","timestamp":1777508795219,"version":"3.51.4"},"reference-count":101,"publisher":"MIS Quarterly","issue":"2","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"published-print":{"date-parts":[[2021,6,1]]},"abstract":"<jats:p>Recent initiatives to improve healthcare quality and reduce costs have centered around payment mechanisms and IT-enabled health information exchanges (HIEs). Such initiatives profoundly influence both providers\u2019 choices in terms of healthcare effort levels and HIE adoption and patients\u2019 choice of providers. Using a game-theoretical model of a healthcare setup, we examine the role of payment models in aligning providers\u2019 and patients\u2019 incentives for realizing socially optimal (i.e., first-best) choices. We show that the traditional fee-for-service (FFS) payment model does not necessarily induce the first-best solution. The pay-for-performance (P4P) model may induce the first-best solution under some conditions if provider switching by patients during a health episode is socially suboptimal, making provider coordination less of an issue. We identify an episode-based payment (EBP) model that can always induce the first-best solution. The proposed EBP model reduces to the P4P model if the P4P model induces the first-best solution. In other cases, the first-best inducing EBP model is multilateral in the sense that the payment to a provider depends not only on the provider\u2019s own efforts and outcomes but also on those of other providers. Furthermore, the payment in this EBP model is sequence dependent in the sense that payment to a provider is contingent upon whether the patient visits a given provider first or second. We show that the proposed EBP model achieves the lowest healthcare cost, not necessarily at the expense of care quality or provider payment, relative to FFS and P4P. Although our proposed contract is complex, it sets an optimality baseline when evaluating simpler contracts and also characterizes aspects of payment that need to be captured for socially desirable actions. We further show that the value of HIEs depends critically on the payment model as well as on the social desirability of patient switching. Under all three payment models, the HIE value is higher when switching by at least some patients is desirable than when switching by any patient is undesirable. Moreover, the HIE value is highest under the FFS model and lowest under the P4P model. Hence, assessing the value of HIEs in isolation from the underlying payment mechanism and patient-switching behavior may result in under- or overestimation of the HIE value. Therefore, as payment models evolve over time, there is a real need to reevaluate the HIE value and the government subsidies that induce providers to adopt HIEs.<\/jats:p>","DOI":"10.25300\/misq\/2021\/14809","type":"journal-article","created":{"date-parts":[[2021,8,20]],"date-time":"2021-08-20T16:04:48Z","timestamp":1629475488000},"page":"637-692","update-policy":"https:\/\/doi.org\/10.13003\/0pyd3js","source":"Crossref","is-referenced-by-count":8,"title":["Designing Payment Contracts for Healthcare Services to Induce Information Sharing: The Adoption and the Value of Health Information Exchanges (HIEs)"],"prefix":"10.25300","volume":"45","author":[{"given":"Mehmet U. S.","family":"Ayvaci","sequence":"first","affiliation":[{"name":"Naveen Jindal School of Management, The University of Texas at Dallas, Richardson, TX, U.S.A."}]},{"given":"Huseyin","family":"Cavusoglu","sequence":"additional","affiliation":[{"name":"Naveen Jindal School of Management, The University of Texas at Dallas, Richardson, TX, U.S.A."}]},{"given":"Yeongin","family":"Kim","sequence":"additional","affiliation":[{"name":"School of Business, Virginia Commonwealth University Richmond, VA, U.S.A."}]},{"given":"Srinivasan","family":"Raghunathan","sequence":"additional","affiliation":[{"name":"Naveen Jindal School of Management, The University of Texas at Dallas, Richardson, TX, U.S.A."}]}],"member":"10933","published-online":{"date-parts":[[2021,6,1]]},"reference":[{"issue":"2","key":"2025082212233601400_b1-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"341","DOI":"10.1287\/isre.2017.0745","article-title":"Reducing Medicare Spending Through Electronic Health Information Exchange: The Role of Incentives and Exchange Maturity","volume":"29","author":"Adjerid","year":"2018","journal-title":"Information Systems Research"},{"issue":"16","key":"2025082212233601400_b2-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1695","DOI":"10.1001\/jama.2012.525","article-title":"Sharing Clinical Data Electronically: Critical Challenge for Fixing the Health Care System","volume":"307","author":"Adler-Milstein","year":"2012","journal-title":"JAMA"},{"issue":"8","key":"2025082212233601400_b3-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1486","DOI":"10.1377\/hlthaff.2013.0124","article-title":"Operational Health Information Exchanges Show Substantial Growth, But Long-Term Funding Remains a Concern","volume":"32","author":"Adler-Milstein","year":"2013","journal-title":"Health Affairs"},{"key":"2025082212233601400_b4-05_14809_ra_ayvacicavusoglukim","unstructured":"The Advisory Board Company\n          . 2013. \u201cHow to Approach Physician Compensation: Three Lessons from Early ACOs\u201d (https:\/\/www.advisory.com\/research\/medical-group-strategy-council\/practice-notes\/2013\/august\/learning-from-early-acos)"},{"issue":"1","key":"2025082212233601400_b5-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"97","DOI":"10.1287\/isre.2018.0789","article-title":"When Algorithmic Predictions Use Human-Generated Data: A Bias-Aware Classification Algorithm for Breast Cancer Diagnosis","volume":"30","author":"Ahsen","year":"2019","journal-title":"Information Systems Research"},{"key":"2025082212233601400_b6-05_14809_ra_ayvacicavusoglukim","unstructured":"American Academy of Actuaries\n          . 2012. \u201cAn Actuarial Perspective on Accountable Care Organizations\u201d (https:\/\/www.actuary.org\/files\/ACO_IB_UPDATE_Final_121912.pdf)"},{"issue":"3","key":"2025082212233601400_b7-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"319","DOI":"10.1111\/j.1937-5956.2011.01218.x","article-title":"Performance Effects Related to the Sequence of Integration of Healthcare Technologies","volume":"20","author":"Angst","year":"2011","journal-title":"Production and Operations Management"},{"issue":"3","key":"2025082212233601400_b8-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"429","DOI":"10.1287\/isre.1110.0350","article-title":"The Impact of Automation of Systems on Medical Errors: Evidence from Field Research","volume":"22","author":"Aron","year":"2011","journal-title":"Information Systems Research"},{"issue":"5","key":"2025082212233601400_b9-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1027","DOI":"10.1287\/mnsc.1120.1606","article-title":"On Hospice Operations Under Medicare Reimbursement Policies","volume":"59","author":"Ata","year":"2013","journal-title":"Management Science"},{"issue":"3","key":"2025082212233601400_b10-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"740","DOI":"10.1111\/poms.12953","article-title":"The Impact of Health Information Exchanges on Emergency Department Length of Stay","volume":"28","author":"Ayer","year":"2019","journal-title":"Production and Operations Management"},{"issue":"1","key":"2025082212233601400_b11-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"16","DOI":"10.1016\/j.annemergmed.2013.01.006","article-title":"Health Information Exchange Reduces Repeated Diagnostic Imaging for Back Pain","volume":"62","author":"Bailey","year":"2013","journal-title":"Annals of Emergency Medicine"},{"key":"2025082212233601400_b12-05_14809_ra_ayvacicavusoglukim","unstructured":"Bailit, M., and Hughes, C.\u20082011. \u201cKey Design Elements of Shared-Savings Payment Arrangements,\u201d Commonwealth Fund, (https:\/\/www.commonwealthfund.org\/sites\/default\/files\/documents\/___media_files_publications_issue_brief_2011_aug_1539_bailit_key_design_elements_sharedsavings_ib_v2.pdf)."},{"key":"2025082212233601400_b13-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","DOI":"10.56021\/9781421420714","volume-title":"Introduction to US Health Policy: The Organization, Financing, and Delivery of Health Care in America","author":"Barr","year":"2016"},{"key":"2025082212233601400_b14-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1364","DOI":"10.1056\/NEJMp1201268","article-title":"Medicare\u2019s Readmissions-Reduction Program: A Positive Alternative","volume":"366","author":"Berenson","year":"2012","journal-title":"New England Journal of Medicine"},{"issue":"1","key":"2025082212233601400_b15-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"169","DOI":"10.2307\/3250983","article-title":"A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation","volume":"24","author":"Bharadwaj","year":"2000","journal-title":"MIS Quarterly"},{"issue":"10","key":"2025082212233601400_b16-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"2543","DOI":"10.1287\/mnsc.2014.1934","article-title":"Electronic Medical Records and Physician Productivity: Evidence from Panel Data Analysis","volume":"60","author":"Bhargava","year":"2014","journal-title":"Management Science"},{"issue":"24","key":"2025082212233601400_b17-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"2593","DOI":"10.1001\/jama.2012.6663","article-title":"Health Information Technology in the Era of Care Delivery Reform: To What End?","volume":"307","author":"Bitton","year":"2012","journal-title":"JAMA"},{"key":"2025082212233601400_b18-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"501","DOI":"10.1056\/NEJMp1006114","article-title":"The \u2018Meaningful Use\u2019 Regulation for Electronic Health Records","volume":"363","author":"Blumenthal","year":"2010","journal-title":"New England Journal of Medicine"},{"issue":"4","key":"2025082212233601400_b19-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"541","DOI":"10.1287\/mnsc.42.4.541","article-title":"Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending","volume":"42","author":"Brynjolfsson","year":"1996","journal-title":"Management Science"},{"key":"2025082212233601400_b20-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"897","DOI":"10.1056\/NEJMp1500445","article-title":"Setting Value-Based Payment Goals: HHS Efforts to Improve US Health Care","volume":"372","author":"Burwell","year":"2015","journal-title":"New England Journal of Medicine"},{"issue":"9","key":"2025082212233601400_b21-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"810","DOI":"10.1016\/j.ijmedinf.2013.05.001","article-title":"Health Information Exchange System Usage Patterns in Three Communities: Practice Sites, Users, Patients, and Data","volume":"82","author":"Campion","year":"2013","journal-title":"International Journal of Medical Informatics"},{"issue":"7","key":"2025082212233601400_b22-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"790","DOI":"10.1002\/hec.3061","article-title":"Measuring the Hospital Length of Stay\/Readmission Cost Trade-Off Under a Bundled Payment Mechanism","volume":"24","author":"Carey","year":"2015","journal-title":"Health Economics"},{"issue":"1","key":"2025082212233601400_b23-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"28","DOI":"10.1287\/isre.1050.0041","article-title":"The Value of Intrusion Detection Systems in Information Technology Security Architecture","volume":"16","author":"Cavusoglu","year":"2005","journal-title":"Information Systems Research"},{"issue":"2","key":"2025082212233601400_b24-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"198","DOI":"10.1287\/isre.1080.0180","article-title":"Configuration of and Interaction Between Information Security Technologies: The Case of Firewalls and Intrusion Detection Systems","volume":"20","author":"Cavusoglu","year":"2009","journal-title":"Information Systems Research"},{"issue":"3","key":"2025082212233601400_b25-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"638","DOI":"10.1287\/mnsc.2013.1763","article-title":"Outsourcing Information Security: Contracting Issues and Security Implications","volume":"60","author":"Cezar","year":"2013","journal-title":"Management Science"},{"key":"2025082212233601400_b26-05_14809_ra_ayvacicavusoglukim","first-page":"397","article-title":"Who Ordered That? The Economics of Treatment Choices in Medical Care","volume-title":"Handbook of Health Economics","author":"Chandra","year":"2011"},{"issue":"4","key":"2025082212233601400_b27-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"484","DOI":"10.1287\/isre.1070.0166","article-title":"An Empirical Analysis of Contract Structures In IT Outsourcing","volume":"20","author":"Chen","year":"2009","journal-title":"Information Systems Research"},{"issue":"3","key":"2025082212233601400_b28-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"155","DOI":"10.1016\/j.infoandorg.2004.02.001","article-title":"Pushing the Contextual Envelope: Developing and Diffusing IS Theory for Health Information Systems Research","volume":"14","author":"Chiasson","year":"2004","journal-title":"Information and Organization"},{"key":"2025082212233601400_b29-05_14809_ra_ayvacicavusoglukim","unstructured":"CMS\n          . 2013. \u201cNational Provider Call: Hospital Value-Based Purchasing\u201d (https:\/\/www.cms.gov\/Medicare\/Quality-Initiatives-Patient-Assessment-Instruments\/hospital-value-based-purchasing\/Downloads\/HVBP-NPC-Transcript-022812.pdf"},{"key":"2025082212233601400_b30-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1075","DOI":"10.1056\/NEJMp1113361","article-title":"The Potential for Cost Savings Through Bundled Episode Payments","volume":"366","author":"Cutler","year":"2012","journal-title":"New England Journal of Medicine"},{"key":"2025082212233601400_b31-05_14809_ra_ayvacicavusoglukim","first-page":"563","article-title":"The Anatomy of Health Insurance","volume-title":"Handbook of Health Economics","author":"Cutler","year":"2000"},{"key":"2025082212233601400_b32-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1033","DOI":"10.1056\/NEJMp0906121","article-title":"Building a Bridge from Fragmentation to Accountability: The Prometheus Payment Model","volume":"361","author":"de Brantes","year":"2009","journal-title":"New England Journal of Medicine"},{"issue":"2","key":"2025082212233601400_b33-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"240","DOI":"10.1287\/isre.2016.0626","article-title":"Sustainability of Healthcare Information Exchanges: A Game-Theoretic Approach","volume":"27","author":"Demirezen","year":"2016","journal-title":"Information Systems Research"},{"key":"2025082212233601400_b34-05_14809_ra_ayvacicavusoglukim","article-title":"Health Information Exchange and Market Competition: An Analysis of New York State","author":"Desai","year":"2013"},{"issue":"1","key":"2025082212233601400_b35-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"93","DOI":"10.1287\/isre.1080.0223","article-title":"Design and Analysis of Contracts for Software Outsourcing","volume":"21","author":"Dey","year":"2010","journal-title":"Information Systems Research"},{"issue":"4","key":"2025082212233601400_b36-05_14809_ra_ayvacicavusoglukim","first-page":"239","article-title":"The Trillion Dollar Conundrum: Complementarities and Health Information Technology","volume":"6","author":"Dranove","year":"2014","journal-title":"American Economic Journal: Economic Policy"},{"issue":"2","key":"2025082212233601400_b37-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"129","DOI":"10.1016\/0167-6296(86)90002-0","article-title":"Provider Behavior Under Prospective Reimbursement: Cost Sharing and Supply","volume":"5","author":"Ellis","year":"1986","journal-title":"Journal of Health Economics"},{"issue":"3","key":"2025082212233601400_b38-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"257","DOI":"10.1016\/0167-6296(96)00002-1","article-title":"Hospital Response to Prospective Payment: Moral Hazard, Selection, and Practice-Style Effects","volume":"15","author":"Ellis","year":"1996","journal-title":"Journal of Health Economics"},{"issue":"3","key":"2025082212233601400_b39-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"419","DOI":"10.1287\/isre.1110.0382","article-title":"Editorial Overview: The Role of Information Systems in Healthcare: Current Research and Future Trends","volume":"22","author":"Fichman","year":"2011","journal-title":"Information Systems Research"},{"key":"2025082212233601400_b40-05_14809_ra_ayvacicavusoglukim","unstructured":"Frank, R. G.\n          \u20082016. Academic Keynote Address at the Annual Workshop on Health Information Technology and Economics (https:\/\/www.youtube.com\/watch?v=XXDEsxJwKAg)"},{"issue":"6","key":"2025082212233601400_b41-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"735","DOI":"10.1287\/mnsc.47.6.735.9816","article-title":"Outcomes-Adjusted Reimbursement in a Health-Care Delivery System","volume":"47","author":"Fuloria","year":"2001","journal-title":"Management Science"},{"issue":"8","key":"2025082212233601400_b42-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1346","DOI":"10.1377\/hlthaff.2013.0010","article-title":"Hospital Electronic Health Information Exchange Grew Substantially in 2008-12","volume":"32","author":"Furukawa","year":"2013","journal-title":"Health Affairs"},{"issue":"4","key":"2025082212233601400_b43-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"27","DOI":"10.1257\/jep.22.4.27","article-title":"Is American Health Care Uniquely Inefficient?","volume":"22","author":"Garber","year":"2008","journal-title":"Journal of Economic Perspectives"},{"issue":"1","key":"2025082212233601400_b44-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"2","DOI":"10.1287\/mnsc.1040.0229","article-title":"Incentives Between Firms (and Within)","volume":"51","author":"Gibbons","year":"2005","journal-title":"Management Science"},{"issue":"6","key":"2025082212233601400_b45-05_14809_ra_ayvacicavusoglukim","first-page":"845","article-title":"The Argument Against Reimbursing Physicians for Value","volume":"174","author":"Goitein","year":"2014","journal-title":"JAMA"},{"issue":"6","key":"2025082212233601400_b46-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1629","DOI":"10.1377\/hlthaff.25.6.1629","article-title":"Hospital-Physician Portals: The Role of Competition in Driving Clinical Data Exchange","volume":"25","author":"Grossman","year":"2006","journal-title":"Health Affairs"},{"issue":"4","key":"2025082212233601400_b47-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"772","DOI":"10.1287\/opre.2015.1403","article-title":"Bundled Payments or Healthcare Services: Proposer Selection and Information Sharing","volume":"63","author":"Gupta","year":"2015","journal-title":"Operations Research"},{"issue":"2","key":"2025082212233601400_b48-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"189","DOI":"10.1111\/poms.12647","article-title":"A Mobile Platform\u2019s In-App Advertising Contract Under Agency Pricing for App Sales","volume":"26","author":"Hao","year":"2017","journal-title":"Production and Operations Management"},{"issue":"2","key":"2025082212233601400_b49-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"711","DOI":"10.1111\/1475-6773.00141","article-title":"How Do Patients Choose Physicians? Evidence from a National Survey of Enrollees in Employment-Related Health Plans","volume":"38","author":"Harris","year":"2003","journal-title":"Health Services Research"},{"issue":"5","key":"2025082212233601400_b50-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1103","DOI":"10.1377\/hlthaff.24.5.1103","article-title":"Can Electronic Medical Record Systems Transform Health Care? Potential Health Benefits, Savings, and Costs","volume":"24","author":"Hillestad","year":"2005","journal-title":"Health Affairs"},{"issue":"2","key":"2025082212233601400_b51-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"121","DOI":"10.2307\/249475","article-title":"Productivity, Business Profitability, and Consumer Surplus: Three Different Measures of Information Technology Value","volume":"20","author":"Hitt","year":"1996","journal-title":"MIS Quarterly"},{"issue":"4","key":"2025082212233601400_b52-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"465","DOI":"10.2307\/249629","article-title":"Electronic Data Interchange and Small Organizations: Adoption and Impact of Technology","volume":"19","author":"Iacovou","year":"1995","journal-title":"MIS Quarterly"},{"issue":"4","key":"2025082212233601400_b53-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"347","DOI":"10.1001\/jama.2012.196646","article-title":"Time to Get Serious About Pay for Performance","volume":"309","author":"Jha","year":"2013","journal-title":"JAMA"},{"issue":"4","key":"2025082212233601400_b54-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"654","DOI":"10.1287\/msom.1120.0402","article-title":"Performance-Based Contracts for Outpatient Medical Services","volume":"14","author":"Jiang","year":"2012","journal-title":"Manufacturing & Service Operations Management"},{"issue":"4","key":"2025082212233601400_b55-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"832","DOI":"10.1016\/j.jhealeco.2011.05.006","article-title":"Where Would You Go for Your Next Hospitalization?","volume":"30","author":"Jung","year":"2011","journal-title":"Journal of Health Economics"},{"key":"2025082212233601400_b56-05_14809_ra_ayvacicavusoglukim","unstructured":"Kim, Y., Ayvaci, M. U., Raghunathan, S., and Ayer, T.\u20082020. \u201cWhen IT Creates Legal Vulnerability: Not Just Overutilization but Underprovisioning of Health Care Could Be a Consequence\u201d (available at https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=3487639)."},{"issue":"16","key":"2025082212233601400_b57-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1794","DOI":"10.1001\/jama.2011.1561","article-title":"Hospital Readmissions and the Affordable Care Act: Paying for Coordinated Quality Care","volume":"306","author":"Kocher","year":"2011","journal-title":"JAMA"},{"issue":"1","key":"2025082212233601400_b58-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"23","DOI":"10.25300\/MISQ\/2017\/41.1.02","article-title":"Is Voluntary Profiling Welfare Enhancing?","volume":"41","author":"Koh","year":"2017","journal-title":"MIS Quarterly"},{"issue":"2","key":"2025082212233601400_b59-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"295","DOI":"10.1287\/isre.1120.0447","article-title":"Contracting Information Security in the Presence of Double Moral Hazard","volume":"24","author":"Lee","year":"2013","journal-title":"Information Systems Research"},{"issue":"1","key":"2025082212233601400_b60-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"70","DOI":"10.1287\/isre.2015.0607","article-title":"Mandatory Standards and Organizational Information Security","volume":"27","author":"Lee","year":"2016","journal-title":"Information Systems Research"},{"issue":"6","key":"2025082212233601400_b61-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1092","DOI":"10.1287\/mnsc.1110.1471","article-title":"An Evidence-Based Incentive System for Medicare\u2019s End-Stage Renal Disease Program","volume":"58","author":"Lee","year":"2012","journal-title":"Management Science"},{"issue":"3","key":"2025082212233601400_b62-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"545","DOI":"10.1111\/1756-2171.12030","article-title":"The Impact of Health Information Technology on Hospital Productivity","volume":"44","author":"Lee","year":"2013","journal-title":"The RAND Journal of Economics"},{"issue":"6","key":"2025082212233601400_b63-05_14809_ra_ayvacicavusoglukim","first-page":"847","article-title":"Improving Value Is Improving Health Care, Not Rationing","volume":"174","author":"Lee","year":"2014","journal-title":"JAMA: Internal Medicine"},{"issue":"4","key":"2025082212233601400_b64-05_14809_ra_ayvacicavusoglukim","first-page":"429","article-title":"Health Information Exchange: Obvious Choice or Pipe Dream?","volume":"176","author":"Mahajan","year":"2016","journal-title":"JAMA: Internal Medicine"},{"key":"2025082212233601400_b65-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","unstructured":"McCullough, J. S., Parente, S., and Town, R.\u20082013. \u201cHealth Information Technology and Patient Outcomes: The Role of Organizational and Informational Complementarities\u201d NBER Working Paper Series\u200818684 (https:\/\/www.nber.org\/system\/files\/working_papers\/w18684\/w18684.pdf).","DOI":"10.3386\/w18684"},{"key":"2025082212233601400_b66-05_14809_ra_ayvacicavusoglukim","first-page":"461","article-title":"Physician Agency","volume-title":"Handbook of Health Economics","author":"McGuire","year":"2000"},{"issue":"2","key":"2025082212233601400_b67-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"283","DOI":"10.2307\/25148636","article-title":"Review: Information Technology and Organizational Performance: An Integrative Model of IT Business Value","volume":"28","author":"Melville","year":"2004","journal-title":"MIS Quarterly"},{"issue":"2","key":"2025082212233601400_b68-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"153","DOI":"10.1016\/S0167-9236(00)00095-6","article-title":"Cost Control and Production Performance Enhancement by IT Investment and Regulation Changes: Evidence from the Healthcare Industry","volume":"30","author":"Menon","year":"2000","journal-title":"Decision Support Systems"},{"key":"2025082212233601400_b69-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"28","DOI":"10.1016\/j.jhealeco.2013.10.004","article-title":"Health Information Exchange, System Size and Information Silos","volume":"33","author":"Miller","year":"2014","journal-title":"Journal of Health Economics"},{"issue":"1","key":"2025082212233601400_b70-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"205","DOI":"10.2307\/41410414","article-title":"Information Technology and Firm Profitability: Mechanisms and Empirical Evidence","volume":"36","author":"Mithas","year":"2012","journal-title":"MIS Quarterly"},{"key":"2025082212233601400_b71-05_14809_ra_ayvacicavusoglukim","unstructured":"Morris, G., Afsal, S., and Finney, D.\u20082012). Consumer Engagement in Health Information Exchange, Office of the National Coordinator for Health Information Technology (https:\/\/www.healthit.gov\/sites\/default\/files\/consumer_mediated_exchange.pdf)."},{"issue":"15","key":"2025082212233601400_b72-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1185","DOI":"10.1001\/jama.1995.03520390045031","article-title":"Variation in Patient Utilities for Outcomes of the Management of Chronic Stable Angina: Implications for Clinical Practice Guidelines","volume":"273","author":"Nease","year":"1995","journal-title":"JAMA"},{"issue":"3","key":"2025082212233601400_b73-05_14809_ra_ayvacicavusoglukim","first-page":"1236","article-title":"Reimbursing Health Plans and Health Providers: Efficiency in Production Versus Selection","volume":"34","author":"Newhouse","year":"1996","journal-title":"Journal of Economic Literature"},{"key":"2025082212233601400_b74-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1090","DOI":"10.1056\/NEJMp1011227","article-title":"Tapping the Unmet Potential of Health Information Technology","volume":"364","author":"O\u2019Malley","year":"2011","journal-title":"New England Journal of Medicine"},{"key":"2025082212233601400_b75-05_14809_ra_ayvacicavusoglukim","unstructured":"ONC\n          . 2014. \u201cReport To Congress: Update on the Adoption of Health Information Technology and Related Efforts to Facilitate the Electronic Use and Exchange of Health Information,\u201d The Office of the National Coordinator for Health Information Technology (https:\/\/www.healthit.gov\/sites\/default\/files\/rtc_adoption_and_exchange9302014.pdf)"},{"key":"2025082212233601400_b76-05_14809_ra_ayvacicavusoglukim","unstructured":"ONC\n          . 2015. \u201cReport To Congress: Report on Health Information Blocking,\u201d The Office of the National Coordinator for Health Information Technology (https:\/\/www.healthit.gov\/sites\/default\/files\/reports\/info_blocking_040915.pdf)."},{"issue":"3","key":"2025082212233601400_b77-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"491","DOI":"10.1287\/isre.1110.0349","article-title":"An Analysis of the Adoption Of Digital Health Records Under Switching Costs","volume":"22","author":"Ozdemir","year":"2011","journal-title":"Information Systems Research"},{"issue":"4","key":"2025082212233601400_b78-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"512","DOI":"10.1287\/msom.1120.0384","article-title":"Physician Workload and Hospital Reimbursement: Overworked Physicians Generate Less Revenue Per Patient","volume":"14","author":"Powell","year":"2012","journal-title":"Manufacturing & Service Operations Management"},{"issue":"2","key":"2025082212233601400_b79-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"107","DOI":"10.1057\/palgrave.ejis.3000260","article-title":"Determinants of EDI Adoption in the Transportation Industry","volume":"6","author":"Premkumar","year":"1997","journal-title":"European Journal of Information Systems"},{"issue":"2","key":"2025082212233601400_b80-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"131","DOI":"10.1001\/jama.2015.18161","article-title":"Medicare\u2019s New Bundled Payments: Design, Strategy, and Evolution","volume":"315","author":"Press","year":"2016","journal-title":"JAMA"},{"issue":"3","key":"2025082212233601400_b81-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"477","DOI":"10.1377\/hlthaff.2014.0729","article-title":"Despite The Spread of Health Information Exchange, There Is Little Evidence of its Impact on Cost, Use, and Quality of Care","volume":"34","author":"Rahurkar","year":"2015","journal-title":"Health Affairs"},{"key":"2025082212233601400_b82-05_14809_ra_ayvacicavusoglukim","unstructured":"Rau, J.\n          \u20082013. \u201cMethodology: How Value Based Purchasing Payments Are Calculated,\u201d KHN (https:\/\/khn.org\/news\/value-based-purchasing-medicare-methodology\/)."},{"issue":"3","key":"2025082212233601400_b83-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"iii","DOI":"10.2307\/41703474","article-title":"Editor\u2019s Comments: Riding the Wave: Past Trends and Future Directions for Health IT Research","volume":"36","author":"Romanow","year":"2012","journal-title":"MIS Quarterly"},{"key":"2025082212233601400_b84-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1197","DOI":"10.1056\/NEJMp0804658","article-title":"Beyond Pay for Performance-Emerging Models of Provider-Payment Reform","volume":"359","author":"Rosenthal","year":"2008","journal-title":"New England Journal of Medicine"},{"issue":"7","key":"2025082212233601400_b85-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"740","DOI":"10.1001\/jama.297.7.740","article-title":"Pay-for-Performance: Will the Latest Payment Trend Improve Care?","volume":"297","author":"Rosenthal","year":"2007","journal-title":"JAMA"},{"key":"2025082212233601400_b86-05_14809_ra_ayvacicavusoglukim","article-title":"Will Outsourcing IT security Lead to a Higher Social Level of Security?","author":"Rowe","year":"2007"},{"issue":"5","key":"2025082212233601400_b87-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"402","DOI":"10.1093\/heapol\/czl018","article-title":"Calculating QALYs, Comparing QALY and DALY Calculations","volume":"21","author":"Sassi","year":"2006","journal-title":"Health Policy and Planning"},{"key":"2025082212233601400_b88-05_14809_ra_ayvacicavusoglukim","unstructured":"Shah, Y.\n          \u20082015. \u201cU.S. Ranks Near Bottom Among Advanced Nations In Efficiency Of Health Care Spending, HuffPost, (https:\/\/www.huffpost.com\/entry\/us-health-care-efficiency_n_4430101)."},{"issue":"2","key":"2025082212233601400_b89-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"216","DOI":"10.1016\/j.annemergmed.2015.06.018","article-title":"Health Information Exchange in Emergency Medicine","volume":"67","author":"Shapiro","year":"2016","journal-title":"Annals of Emergency Medicine"},{"key":"2025082212233601400_b90-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1007\/1-4020-8090-5_1","article-title":"System Reliability and Free Riding","volume-title":"Economics of Information Security","author":"Varian","year":"2004"},{"issue":"3","key":"2025082212233601400_b91-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"288","DOI":"10.1136\/jamia.2010.003673","article-title":"Health Information Exchange: Persistent Challenges and New Strategies","volume":"17","author":"Vest","year":"2010","journal-title":"Journal of the American Medical Informatics Association"},{"key":"2025082212233601400_b92-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","unstructured":"Vlachy, J., Ayer, T., Ayvaci, M. U., and Raghunathan, S.\u20082020. \u201cThe Business of Healthcare: The Role of Physician Integration in Bundled Payments\u201d (available at https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=3539596).","DOI":"10.2139\/ssrn.3539596"},{"issue":"3","key":"2025082212233601400_b93-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"527","DOI":"10.1377\/hlthaff.2011.1314","article-title":"From the Office of the National Coordinator: The Strategy for Advancing the Exchange of Health Information","volume":"31","author":"Williams","year":"2012","journal-title":"Health Affairs"},{"issue":"3","key":"2025082212233601400_b94-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"787","DOI":"10.1287\/isre.1120.0448","article-title":"IT Implementation Contract Design: Analytical and Experimental Investigation of IT Value, Learning, and Contract Structure","volume":"24","author":"Wu","year":"2012","journal-title":"Information Systems Research"},{"key":"2025082212233601400_b95-05_14809_ra_ayvacicavusoglukim","unstructured":"Yaraghi, N.\n          \u20082015. \u201cA Sustainable Business Model for Health Information Exchange Platforms: The Solution to Interoperability in Healthcare IT,\u201d The Brookings Institution (https:\/\/www.brookings.edu\/wp-content\/uploads\/2016\/06\/HIE.pdf)."},{"key":"2025082212233601400_b96-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","DOI":"10.1145\/2445560.2445561","article-title":"Network Effects in Health Information Exchange Growth","volume":"4","author":"Yaraghi","year":"2013","journal-title":"ACM Transactions on Management Information Systems"},{"issue":"1","key":"2025082212233601400_b97-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1287\/isre.2014.0547","article-title":"Health Information Exchange as a Multisided Platform: Adoption, Usage and Practice Involvement in Service Co-Production","volume":"26","author":"Yaraghi","year":"2015","journal-title":"Information Systems Research"},{"issue":"2","key":"2025082212233601400_b98-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"418","DOI":"10.1287\/isre.1120.0419","article-title":"Performance Implications of CRM Technology Use: A Multilevel Field Study of Business Customers and Their Providers in the Telecommunications Industry","volume":"23","author":"Zablah","year":"2012","journal-title":"Information Systems Research"},{"issue":"1","key":"2025082212233601400_b99-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"10","DOI":"10.1016\/0022-0531(70)90010-4","article-title":"Medical Insurance: A Case Study of the Tradeoff Between Risk Spreading and Appropriate Incentives","volume":"2","author":"Zeckhauser","year":"1970","journal-title":"Journal of Economic Theory"},{"issue":"4","key":"2025082212233601400_b100-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"454","DOI":"10.1136\/jamia.2010.004440","article-title":"Quantifying the Impact Of Health IT Implementations on Clinical Workflow: A New Methodological Perspective","volume":"17","author":"Zheng","year":"2010","journal-title":"Journal of the American Medical Informatics Association"},{"key":"2025082212233601400_b101-05_14809_ra_ayvacicavusoglukim","doi-asserted-by":"crossref","first-page":"251","DOI":"10.1057\/palgrave.ejis.3000475","article-title":"Electronic Business Adoption by European Firms: A Cross-Country Assessment of the Facilitators And Inhibitors","volume":"12","author":"Zhu","year":"2003","journal-title":"European Journal of Information Systems"}],"container-title":["MIS Quarterly"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/misq.umn.edu\/misq\/article-pdf\/45\/2\/637\/6875\/05_14809_ra_ayvacicavusoglukim.pdf","content-type":"application\/pdf","content-version":"vor","intended-application":"syndication"},{"URL":"https:\/\/misq.umn.edu\/misq\/article-pdf\/45\/2\/637\/6875\/05_14809_ra_ayvacicavusoglukim.pdf","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2025,8,22]],"date-time":"2025-08-22T16:24:46Z","timestamp":1755879886000},"score":1,"resource":{"primary":{"URL":"https:\/\/misq.umn.edu\/misq\/article\/45\/2\/637\/1854\/Designing-Payment-Contracts-for-Healthcare"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2021,6,1]]},"references-count":101,"journal-issue":{"issue":"2","published-online":{"date-parts":[[2021,6,1]]},"published-print":{"date-parts":[[2021,6,1]]}},"URL":"https:\/\/doi.org\/10.25300\/misq\/2021\/14809","relation":{},"ISSN":["0276-7783","2162-9730"],"issn-type":[{"value":"0276-7783","type":"print"},{"value":"2162-9730","type":"electronic"}],"subject":[],"published":{"date-parts":[[2021,6,1]]},"assertion":[{"value":"2017-1-19","order":0,"name":"received","label":"Received","group":{"name":"publication_history","label":"Publication History"}},{"value":"2020-4-16","order":1,"name":"accepted","label":"Accepted","group":{"name":"publication_history","label":"Publication History"}},{"order":0,"name":"peer_reviewed","label":"Peer reviewed","explanation":{"URL":"Double-blind"},"group":{"name":"peer_review","label":"Peer review"}}]}}