Interoperability Meets Accountability: How Data Interoperability and Experiential Quality Influence Malpractice Lawsuits

• In Event: PROCUREMENT and SOURCING: Empirical Research in Sourcing

Abstract

This study examines the legal implications of health information exchange (HIE) adoption, a key policy-driven effort to enhance healthcare interoperability in the U.S. Using an eight-year panel of 952 hospitals and over 24,000 malpractice cases, we find that HIE adoption is associated with a 9.2% increase in malpractice lawsuits. However, this effect is mitigated by hospitals’ experiential quality; hospitals with stronger patient-reported communication and empathy see a 19.6% reduction in this risk. These findings highlight a critical trade-off: while interoperability improves care coordination, it may elevate legal exposure, underscoring the reputational dimensions of transparency in healthcare delivery.

Authors

• Sukrit Pal, Iowa State University

• David Cantor, Iowa State University

• Anand Nair, D'Amore-McKim School of Business Northeastern University