VALUE OF TECHNOLOGY INVESTMENTS IN HEALTH-CARE ORGANIZATIONS - A STOCHASTIC DECISION-MODEL

Hospitals are technology-based service organizations. In recent years, medical equipment expenditures have increased as a percentage of the total costs of health-care institutions. Hospitals need a rational inv estment policy for technology acquisition that will take into consider ation the value and contributions of the technology once implemented i n the hospital. Medical technology is expensive and there is uncertain ty when investing in it. This paper offers a preliminary stochastic mo del to address the issue of how much a hospital should invest in techn ology.