Campus Units

Accounting

Document Type

Article

Publication Version

Accepted Manuscript

Publication Date

Fall 2019

Journal or Book Title

Journal of Information Systems

Volume

33

Issue

3

First Page

19

Last Page

44

DOI

10.2308/isys-52149

Abstract

High-quality financial data are important to stakeholders in the healthcare sector but are difficult to obtain. The two data sources most often used are hospital financial statements (HFSs) and Medicare Cost Reports (MCRs). Applying an analytical framework of data information quality dimensions, we compare a sample of 34,728 instances of 12 financial statement items extracted from HFSs and MCRs filed from 2007 through 2011. Our comparison shows a nontrivial frequency of missing items, widespread discrepancies across financial items, and a materiality of discrepancies that is significant in both sources. We also find many avoidable computational errors and significant absolute relative discrepancies between the sources. Additionally, we perform replications of two prior studies to test the believability of HFS and MCR data. Although we cannot conclude which source is more accurate, we do alert users of hospital financial data to the comparative potentials and limitations of these two major sources.

Comments

This accepted article is published as Melvin A. Lamboy-Ruiz, Won G. No, and Olena V. Watanabe (2019) Discrepancies in Hospital Financial Information: Comparison of Financial Data in State Data Repositories and the Healthcare Cost Reporting Information System. Journal of Information Systems: Fall 2019, Vol. 33, No. 3, pp. 19-44. Doi: 10.2308/isys-52149. Posted with permission.

Copyright Owner

American Accounting Association

Language

en

File Format

application/pdf

Published Version

Share

COinS