OBJECTIVE: An application service provider (ASP) is a business that provides computer-based services to customers over a network. The need for ASPs has developed due to increasing costs of information systems, which have far exceeded the price-range of small to medium sized businesses. The ASP could be considered as a potential strategy in hospital information systems (HIS). This study investigates significant factors influencing the adoption of an ASP in hospitals.

METHODS: Two survey instruments were developed for information technology (IT) experts in hospitals and IT companies, respectively, and a total of 101 responses were analyzed using SAS, version 9.1. Respondents' characteristics were presented using descriptive statistics, while factor analyses were performed for ASP characteristics and influencing factors for ASP adoption. Regression analyses enabled the understanding of relationships between factors and attitudes toward ASP adoption.

RESULTS: Nine factors were derived: efficiency, availability, responsiveness, security, resistancy, service quality, attitude toward information-oriented work of CEO or IT experts, environment, and user attitude. Except for responsiveness and CEO or IT experts' attitude, the seven factors had significant effects on the adoption of an ASP in hospitals. In particular, security and user attitude showed negative effects on ASP adoption. There were variations in the subsystems of HIS.

CONCLUSION: For adopting ASP in hospitals, efficiency, availability, security, resistancy, service quality, environment, and user attitude need to be considered, especially security and user attitude. This study allowed the understanding and comparative analysis of user (hospitals) and supplier (IT companies) perspectives of information systems in terms of ASP adoption in hospitals.