Abstract: Abstract Information Technology has transformed almost all aspects of modern healthcare and is playing a vital role in the administration of hospitals around the world. This case study examines a hospi-tal’s struggle to solve crucial operational problems related to the efficient management of medi-cal equipment inventory. This case study is the result of studying the issues facing a regional medical center in the Western United States and is based on an actual set of events. This case focuses on one hospital’s decision between deploying a sophisticated information system in the form of a Real Time Location System, or outsourcing these activities to a specialist company. All identifying information has been changed to protect the privacy of all parties involved. Case Summary: A large regional medical center in the Western United States is struggling. A consulting firm hired to examine the hospital’s operating procedures revealed that the hospital was suffering from terrible inefficiencies costing the hospital millions. In addition, to the financial costs it was also exposing the hospital to legal liabilities because important medical equipment maintenance activities were not being conducted. The new CEO took immediate action to understand the full extent of the problem and, based upon advice from his leadership team, to identify a solution. The CEO and his team had a difficult choice between investing in more technology or outsourc-ing important hospital activates.

Keywords: IS 2010.1, IS 2010.7, IS 2010.5

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Recommended Citation: Lawrence, C., Firth, D., khumalo, F. (2013). Improving healthcare administration: Real time locations systems or outsourcing? . Information Systems Education Journal, 11(5) pp 49-56. http://isedj.org/2013-11/ ISSN: 1545-679X. (A preliminary version appears in The Proceedings of ISECON 2012)