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Evaluation of information systems in health care:a framework and its application Hannu Salmela and Pekka Turunen Turku School of Economics and Business Administration Rehtorinpellonkatu

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Evaluation of information systems in health care:

a framework and its application

Hannu Salmela and Pekka Turunen

Turku School of Economics and Business Administration

Rehtorinpellonkatu 3, 20500 Turku FINLAND

The objective of this study is to develop a framework for assessing the costs and benefits of information systems

in health care The framework combines views from different disciplines, such as information systems evaluation, medical informatics, and health economics It suggests that the impact of health care information system should be assessed on multiple levels: the quality of medical information, the quality of diagnostic decisions and, ultimately, the quality of health care services To illustrate the application of the framework, an evaluation plan is developed for an information system called Computer Assisted Notification of Drug Effects

on Laboratory Tests (CANDELA) We assume that the framework and the evaluation plan benefits researchers and practitioners in the evaluation of similar systems

1 Introduction

While information technology (IT) expenditure in

hospitals is increasing, the effects of these

investments on health care services have not been

extensively studied (Ovid MEDILINE 1966-1997,

Ingasoll et al 1990; van der Loo et al 1995).

Although individual studies have suggested a

positive relationship between the level of IS

investments and the productivity of health care

services (c.f Menon et al 1996), the overall results

of IT investment profitability studies have been

inconclusive (Mitra & Karim 1996 p 29-31) On

the other hand, general IT investment productivity

does not guarantee the productivity of a single

health care information system

In many ways, the evaluation of information

systems in health care faces similar challenges as

the evaluation of IS in other types of organizations

Costs are often indirect and difficult to measure

Organizational impacts and benefits, on the other

hand, are often intangible and their realisation may

take a long time (Saarinen 1993; see also Ives et al.

1983)

Hence, the key principles of the framework

presented in this paper are derived from IS

evaluation literature Both the improvements in

information, improvements in individual

decisions/actions, as well as improvements in

organization level can indicate IS effectiveness and

success (DeLone & McLean 1992) The selection

between these measures is to a large degree

dependent on the values and objectives driving the

evaluation The type of the systems and the

economic considerations of gathering the

evaluation data need to be considered as well

There are, however, additional challenges in IS

evaluation in health care context Most notably,

information systems can leverage improved

treatment and consequently contribute to patients’ health Since the health impacts are difficult to evaluate in monetary units, the costs of the system have to be contrasted with improved "utility" or

"outcome", rather than with monetary benefits

To illustrate the application of evaluation measures,

an evaluation plan is developed for an information system called Computer Assisted Notification of Drug Effects on Laboratory Tests (CANDELA) The system encodes and links pharmacological drug interference information into a laboratory

information system (Grönroos et al 1995 a; Grönroos et al 1995 b; Grönroos et al 1997) It

assists physicians in interpreting laboratory analysis results and has potential both to reduce costs and to improve the quality of health care services The system is currently being implemented in the University Hospital of Turku Its systematic evaluation will start in the fall 1997

2 Evaluation of information systems

The evaluation of the effectiveness of an information system constitutes one of the key issues in information systems research In research, well-defined outcome measures are needed to ensure that the results from different studies are comparable They are a prerequisite for information systems research to make a contribution to IS practice In practice, success measures are needed

to evaluate IS practice, policies and procedures (DeLone & McLean 1992)

While a single measure of IS success or IS effectiveness would certainly be desirable, it seems unlikely that such a measure could be found Instead, research has provided taxonomies of success variables, which can be applied in different

situations (DeLone & McLean 1992; Grover et al.

1996) In general, the success of an information system can be evaluated through 1) The quality of

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information provided to the users, 2) The impact of

IS on users’ thinking, decisions or actions, and 3)

The impact of IS on organization level costs and

benefits

2.1 User sastisfaction

Due to the difficulty to assess IS impacts on

individuals or organizations measures based on

user perceptions have become prominent within IS

literature (Galletta & Lederer 1989) User

information satisfaction (UIS) is probably the most

widely used single measure of IS success The

original user satisfaction instrument contained a set

of 39 factors (Bailey & Pearson 1983) The

satisfaction of users was calculated as the sum of

user’s positive and negative attitudes to these

factors Other researchers have later developed

shortened and modified versions of UIS (Ives et al.

1983; Doll & Torkzadeh 1988; Saarinen 1993) so

much that in 1989, Miller identified 12 different

UIS instruments (Miller 1989)

Some researchers consider UIS as being related to

higher systems use, which in turn is related to

higher individual and organizational performance

(comp DeLone & McLean 1994; Grover et al.

1996; Scott 1994) However, user satisfaction

should be seen as a signal of acceptance of users

rather than a measure of organizational outcomes

While organizational effectiveness measures focus

on actual outcomes, user satisfaction focuses on

process Thus UIS is likely to be more useful in

finding critical problems of IS implementation or

use process than in evaluating the organizational

outcomes

2.2 Individual impact

Some researchers have tried to develop more direct

measures of the impact of an IS on users' learning

and decision making Ultimately, individual impact

should be measured on the basis of whether

information causes the receiver to change his or her

behaviour (Mason 1978) Although questionnaires

can be used here as well, many studies have relied

on laboratory tests where the impact of IS on

decision processes can be directly observed

(Dickson et al 1977; O'Keefe 1989) A limitation

of laboratory tests is that they fail to take into

account the real world environment where the

information system will be used (O'Keefe 1989)

2.3 Organizational outcome

Measures of IS costs and benefits have been more

common in practice than in research Academic

researchers have tended to avoid organizational

performance measures because of the difficulty of

isolating the effect of IS effort from other effects which influence organizational performance

(Grover et al 1996) In practice, ex-ante

evaluations have been more frequently while academics have preferred ex-post evaluation

(Parker et al 1988) For research purposes,

evaluation of IS cost-effectiveness is costly and inhibits comparisons between different studies

(Ives et al 1983 p 785-786; Saarinen 1993) Thus,

standard IS evaluation methods are needed in IS research

Expressing impacts in monetary terms places additional challenges on evaluation Some of the organizational impacts of information systems, such as improvements in products and services or improved management are often intangible Traditional accounting systems rarely provide the information needed to evaluate the costs and benefits associated with a particular IS (Matlin 1979) Hence, many researchers have proposed methodologies to estimate the actual contribution

of IS on firm performance (see Grover et al 1996).

DeLone and McLean (1992) conclude, however, that much work still needs to be done in this area

It appears that a comprehensive evaluation of an information system requires multiple measures (DeLone & McLean 1992; Saarinen 1993 p 51) Both the improvements in information, improvements in individual decisions/actions, as well as improvements in organization level can indicate IS effectiveness and success The selection between these measures is to a large degree dependent on the values and objectives driving the evaluation The type of the systems and the economic considerations of gathering the evaluation data need to be considered as well

3 Evaluation of information systems in health care

In many ways, evaluation of information systems

in health care is no different from that in other types of organizations

There are, however, additional challenges in IS evaluation in health care context Most notably, information systems can leverage improved treatment and consequently contribute to patients' health Because of the potential impacts on patients' lives more strict measurements are used to evaluate health care information systems

3.1 User satisfaction

User satisfaction has been used in evaluating health care information systems (for example Gardner & Lundsgaarde 1994) A number of studies have also applied UIS instruments developed in information

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systems science Pearson’s original user satisfaction

measure has been applied in the evaluation of

Hospital information systems (HIS) in 160

Veterans Administration Medical Centers (Bailey

1990 p 51) That study is further adapted in the

Clinical Computerised Information System (Pugh

& Tan 1994) Bailey and Pearson’s (1983) user

satisfaction measure has been applied into HIS

DSS (Dupuits & Hasman 1995) Chin and McClure

(1995 p 717-721) have used Doll and Torkzadeh’s

UIS instrument to evaluate clinical information

systems

The more strict approach to evaluation is, however,

reflected in the role that UIS measures have in

health care IS evaluation The role of user

satisfaction has not been as prominent as in general

IS research In health care context, only about 4 %

of the studies used user satisfaction effect measure,

whereas in IS research the fraction is 20% (van der

Loo et al 1994; Grover et al 1996) Hence,

although UIS is seen as providing insights into the

usefulness of the system as perceived by users, in

health care it is not very widely used as a surrogate

measure for systems effectiveness Instead, more

direct measures about the impacts on patients’

health are used Surprisingly, user satisfaction

measures have not been used in the evaluation of

supporting and auxiliary type of information

system either (see van der Loo et al 1994, p 50).

Such systems are used in making appointments,

and in managing documentation, financial

transactions and personnel information They

support patient’s welfare only extremely indirectly

(van der Loo et al 1994 p 47 and 50).

3.2 Individual impact

The impact of an information system on decision

making, particularly on diagnostic and treatment

decisions, has been a common basis for evaluation

(for example Maria et al 1994; Wagner & Cooper

1995) A typical evaluation design is based on two

groups where one group uses the information

system while the other doesn’t A recent study that

classified evaluative studies in health care found

that about 64 % of evaluations were based on two

group comparative study (van der Loo et al p 49).

3.3 Organizational outcome

In many cases, a demonstrated impact on treatment

effectiveness is considered as a sufficient criteria

for IS success It is seen as adequate justification

for widespread systems implementation and use

The value of health outcomes should, however, be

assessed in order to ensure economic use of

hospital resources and optimal health care services

for patients

In health economics, several concepts and methods have been developed to assist in evaluating the value of improved health outcomes The three main types of cost and utility measures used in health economics are: cost-effectiveness, cost-utility and cost-benefit analysis

In cost-effectiveness analysis the patient outcomes are measured in the most appropriate natural or physical units such as: life years gained, disabilitydays saved, points of blood pressure reduction Analysis is appropriate when a treatment has only one effect on patient’s health Such analysis can be supported with ratios such as cost per life-year gained or reverse life-years gained per

dollar spent (Drummond et al 1987).

In cost-utility analysis the patient’s health effects are expressed as quality adjusted life-years In cost-utility analysis even multiple health effects of treatment, not necessarily common to both alternatives, can be compared In cost-benefit analysis both the costs and health outcomes are

estimated in monetary units (Drummond et al.

1987)

Cost-benefit studies have been more frequent in the evaluation of IS in health care than in IS evaluation

in general In health care context, 13 % of the evaluative studies used cost-benefit analysis This

is still considerably more than in IS research, where

the fraction is only 4% (van der Loo et al 1994 and Grover et al 1996).

The cost-benefit type of analysis used in information system science have had only a limited affect on this type of evaluation in health care There are some studies in the evaluation of health care information systems where cost-benefit and cost-effectiveness terms have used from point of view of information systems science (Zielstroff 1985)

In information systems science intangible effects and costs are considered as a difficult problem (Saarinen 1993), but in health economics those things are not seen as insurmountable problems In information system science intangible costs and different types of effects are listed in evaluation reports (Johnston & Vitale 1988) But there are only few attempts to quantify intangible benefits and translate them into measurable comparable

values (like Money et al 1988) In this area more

models could be adopted from the cost-utility analysis in health economics They could facilitate comparison of several information systems Such analyses have not been really common in information science

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One difference between information system science

and health economics is that the cost and utility

analysis for information systems are more often

ex-ante than in health care In health care physicians

want to develop and give best possible treatments

The associated costs are thought only afterwards

4 A framework for evaluating medical

alert systems

A medical alert system is defined as an information

system which supports physicians in making

diagnostic and treatment decisions by providing

alerts based on information in clinical databases

(e.g patient information, patients medication

profile, drug information, treatment information)

The core of such system is a knowledge base,

which contains medical research results about

various interactions that need to be taken into

account in diagnostic or treatment decisions The

basic reason for using such systems is that an

individual physician can rarely master all possible

information of different interactions while making

routine clinical decisions

The evaluation of an alert system is a challenging

task The following framework attempts to provide

a comprehensive view of the costs and impacts of

such system Thus, it assists hospital management

in evaluating the costs and benefits of

implementing alert systems It also assists the

developers of alert systems in evaluating system

impacts and thus in improving the system and

justifying its widespread use

4.1 Evaluating the costs of medical alert systems

Figure 1 represents the framework for evaluating the costs associated with developing, implementing, using and maintaining an alert system It is assumed that these processes use four different types of resources: 1) IS personnel time, 2) hospital personnel time, 3) infrastructure and 4) capital

In the case of medical alert systems, the IS personnel cost and the hospital personnel cost are fairly easy to estimate The development and maintenance of software is usually done by external medical software vendors The associated cost is the amount that a hospital pays for the software vendor as software licenses and maintenance fees

In the future, some hospitals specialise in maintaing knowledge databases in specific areas Other hospitals can then purchase new versions of knowledge database against predefined fee Thus, the hospital personnel costs as well can be easily evaluated It is important to note, however, that the implementation and use of an alert system in a hospital is likely to require some time of physicians Obviously, the time of physicians should not be considered as a free resource

Capital employed in IS/IT

IS personnel time

Hospital personnel time

Hardware;

supplies;

office space

The development and maintenance

of alert systems

RESOURCE

IS personnel wages, vendor payments

Hospital personnel wages

Overhead costs

Interest costs COSTS

Figure 1: Overall costs of developing and maintaining alert information systems

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Electronic databases are a prerequisite for the use

of alert systems Investments needed in developing

and maintaing electronic patient databases,

electronic laboratory test databases, etc far exceed

the direct costs of developing alert systems These

costs are infrastructural in the sense that there are

many other applications that use the databases The

way these infrastructural costs should be taken into

account in evaluation is likely vary from one

hospital to another Finally, if the initial investment

is significant, the cost of capital employed in the

project should also be considered

4.2 Evaluating the benefits of medical

alert systems

Figure 2 represents the model for analysing the

impact of alert system on hospital operations The

model assumes that an alert information system can

reduce the time of physician in analysing potential

interactions Alternatively, it can improve the

quality of interaction information, which leads to

better clinical decisions and thus to cost savings or

improved health outcomes Finally, statistics about

the frequency and impacts of different alerts can

result to individual and organizational learning

In the absence of alert systems, physicians use their personal experience and judgement in evaluating the possible drug and medication inferences They consult colleagues, laboratory physicians, books and articles to consider the potential inferences while making clinical decisions Since an alert may reduce the need for such consultation, it has the potential to save physician time in making clinical decisions

The main objective in implementing alert systems

is to improve the quality of clinical decisions The evaluation should demonstrate that the implementation of an alert system has resulted to a permanent change in clinical decision making It should also demonstrate a change in the use of laboratory analyses and medication when diagnosing or treating a particular illness

The evaluation of whether the alert system impacts the quality of clinical decisions can be made in a number of ways Subjective assessment of physicians is one alternative Another approach is

to use laboratory tests using two groups of physicians to solve a number of clinical decision problems, one group using the alert system while the other one relying on their own judgement Ultimately, however, the evaluation should be based on the analysis of hospital records about actual clinical decisions

Improved evaluation of treatment

No information impact

Improved medical information

Resource savings in processing medical data

Resource savings in operations Alert

information

system

INFORMATION IMPACT

ORGANISATIONAL IMPACT

BENEFIT

Cost savings (information processing)

Cost savings

in hospital operations

Health outcomes/ patient utility

Individual/ organizational learning

Figure 2: Evaluation of alert/reminder system impacts

Improved statistics

DECISION IMPACT

Improved diagnosis / treatment decisions Improved

treatment

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Reduced need for laboratory experiments or

medication can lead to cost savings and/or improved

health outcomes In general, cost savings can be

expressed in monetary terms Most hospitals already

have cost estimates for a laboratory test, a particular

medication or a patient day in the hospital In

evaluating the impact on health outcomes or utility

for patients, subjective evaluation of the physicians

is perhaps most common Methods from health

economics could, however, be applied to get more

objective evaluation measures

Finally, it is possible that alert systems can constitute

an effective means to foster individual and

organizational learning about different interactions

Thus, physicians may learn about new interactions

and their influence on clinical decisions In the long

run, this may be an important outcome of

implementing an alert system

5 CANDELA information system

CANDELA is an information system that

automatically gives alerts of important drug effects

and drug interactions (other than therapeutic) on

laboratory tests It plays an active role in assisting

physicians in interpreting laboratory analysis results

and has potential both to reduce costs and to improve

the quality of health care services

CANDELA is based on a database that contains a

large number of rules about how different drugs

interact on laboratory tests The system is connected

to an electronic patient database that contains

information about the medication of individual

patients Thus, for each laboratory test the system

automatically checks whether patients medication

profile could interfere with the test results The ward

physician responsible for the treatment immediately

evaluates on-line alarms of potential drug

interactions (Grönroos et al 1995 a; Grönroos et al.

1995 b; Grönroos et al 1997).

In its current form, CANDELA generates alerts that

are automatically printed to laboratory test reports

Hence, the physicians are not direct users of the

system, and they can not directly ask for

explanations about the alerts If a physician wants

further information, he or she can use the system

interactively from a terminal

In general, CANDELA represents a fairly new type

of clinical information system A somewhat similar

system (HELP) has been in use in a hospital in Salt

Lake City, Utah User attitudes towards HELP have

also been evaluated (Gardner & Lundsgaarde 1994)

As more and more information about patients, drugs,

laboratory tests etc is converted to electronic form,

developing alert and reminder systems will become

easier Hence, the ability to evaluate such systems

becomes increasingly important

6 Evaluation plan for CANDELA information system

The CANDELA information system will be implemented in Turku University Central Hospital (TUCH) during the Fall 1997 The evaluation of CANDELA is projected to take place during Fall

1997 and Spring 1998 The objective of evaluation is

to identify and demonstrate the cost-effectiveness of CANDELA This is considered as an important prerequisite for its widespread use in other hospitals Evaluation is also expected facilitate systems implementation Because of the diversity of alerts, it seems necessary that the evaluation process leads to

a clear view about which of the CANDELA alerts are most valuable By doing so, evaluation assists in withholding some of the less valuable alerts from laboratory reports and thus in reducing information overflow

Based on the framework presented in figure 2, the essential questions for CANDELA evaluation can now be stated as follows:

1 does CANDELA improve the quality of information about drug interactions on laboratory tests?

2 does CANDELA have an impact on clinical decisions that are based on laboratory tests?

3 does the benefits of using CANDELA exceed the costs associated with it?

Hence, the objective is to evaluate the CANDELA system on multiple levels In the following, a plan for the evaluation is outlined

6.1 User satisfaction

The impact of CANDELA on information quality will be evaluated using Doll and Torkzadeh's (1988) UIS instrument This particular instrument was selected because its reliability has been tested in previous studies (Torkzadeh & Doll 1991;

Hendrickson et al 1994; Torkzadeh et al 1994) The

instrument contains key questions of user satisfaction

on information and its quality The developers of the instrument consider it as a potential surrogate measure for utility in decision-making (Doll & Torkzadeh 1988)

The questionnaire will be sent to physicians few months after the system has been taken to use The analysis aims at identifying the departments that were most satisfied with the information The impact

of variables such as age, job experience, specialisation, etc on the perceived value of alert information is analysed

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6.2 Invidual impact

The impact of CANDELA on clinical decisions will

be analysed using two methods To get qualitative

data about the impact of alerts, some physicians are

asked to re-evaluate their previous clinical decisions

(that they had made prior systems implementation)

The question is, whether their decision would have

been different if CANDELA alerts had been

available at the time they made the decision

The second analysis relies on perceptions of

physicians as they use the alerts for interpreting

laboratory tests For each alert, physicians are asked

to evaluate the degree to which the alert was relevant

and the degree to which it changed their clinical

decision This analysis assists in identifying the

alerts that are most influential in decision making To

improve the validity of analysis, the results

concerning different alerts are later evaluated and

discussed with physicians, who are considered as

best experts in their field

6.3 Organizational outcome

The evaluation of organizational outcomes is based

on the analysis of historical data about clinical

decisions The hospital has history records about

laboratory tests, patients’ medical profiles and

associated clinical decisions from the past two years

The analysis of this data can reveal how frequently

physicians have misinterpreted laboratory tests

Hence, it assists in estimating the potential impact

that CANDELA can have on clinical decisions

The analysis of improved health outcomes relies

largely on the expert opinion of physicians Some of

the drug interactions on laboratory results may have

lead to inconclusive diagnosis and to further

experiments and medication Unnecessary

experiments or medication is likely influence

patients’ health The value of avoiding these tests can

be truly significant for an individual patient The

evaluation of health impacts is based on expert

opinion of physicians Health economics evaluation

methods will be applied as well

Evaluating the costs of CANDELA is primarily

based on the license prices and maintenance fees for

the software and for the drug interaction database

Subjective evaluation of the physicians will be used

to estimate whether the use of the system has

increased the time they need for analysing laboratory

results and making clinical decisions The

development costs of electronic patient database and

electronic laboratory database are considered as

infrastructural It seems difficult to assign any

monetary value for the use of the databases

In general, the evaluation of CANDELA is based on

historical comparisons It is believed that the

implementation of CANDELA will reduce the frequency of inaccurate clinical decisions in certain medical areas In this study, the primary objective is

to validate these impacts through history data Comparisons with other hospitals are not planned to

be made in the first round of evaluation

CANDELA information system is telling to physicians responsible for treatment what is true about patient What is true about patient, can theoretically be made without consideration of cost and benefit (comp Shortliffe 1987 p 62-64) But it would be more useful if information from cost and effects would be in future build into Computer Assisted Notification of Drug Effects on Laboratory Tests information system

7 Conclusions and future research

The framework for evaluating medical alert systems benefits researchers Its contribution is as a new means to help them study the impacts of such systems in clinical decision making The framework presented here can also be used in explaining why some alert systems provide more value in terms of cost savings and health outcomes than others do Practitioners can use the framework to review the potential benefits of alert systems in their own hospital They can establish objectives for implementing such systems And they can use the framework as an investigative tool in analysing reasons for low organizational impact of an implemented alert system

This paper describes the evaluation plan for CANDELA Its systematic evaluation will start simultaneously The first preliminary evaluation results will be available in October 1997 The full evaluation of the system is to be completed by May

1998 Based on the experiences gained in CANDELA evaluation the framework and methods will be improved and then applied in other medical information systems projects

Acknowledgements

This study is part of larger research program "Road ahead in Medical Informatics" We would like to express our gratitude to the Academy of Finland for their financial support to this program and to our research

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