A decision model and support system for the optimal design of health information networks

Health information networks (HINs) have become increasingly important in the structure of the health care industry. In this paper, we develop decision models and decision-support systems for designing and performing cost-benefit analyses of HINs. Our models prioritize the connection of various types of health providers to the network based on the costs and benefits of all participants: the network owners, information providers and information users of the HIN. The business strategy underlying this analysis is to design the system with the maximum value for the network owner(s), while ensuring that the network provides positive added value to each of its nodes. Our framework could be used to examine the design of and to perform a cost-benefit analysis for an existing network, for the expansion of an existing network, or for the development of a new network. One can also use the models for break-even point and scenario analyses. We have used our approach to examine an existing HIN [the Wisconsin Health Information Network (WHIN)] and to perform a scenario analysis for a possible restructuring of the network. Our empirical results in this case show that HINs could be highly profitable for all network participants.