J Med Sys (2006) 30(1): 9–16 DOI 10.1007/s10916-006-7398-8 RESEARCH ARTICLE Use of Information Systems in Air Force Medical Treatment Facilities in Strategic Planning and Decision-Making Glenn A. Yap · Elena A. Platonova · Philip F. Musa Received: May 2005 / Accepted: June 2005 C  Springer Science+Business Media, Inc. 2006 Abstract An exploratory study used Ansoff’s strate- gic planning model as a framework to assess perceived effectiveness of information systems in supporting strate- gic business plan development at Air Force medical treat- ment facilities (MTFs). Results showed information sys- tems were most effective in supporting historical trend analysis, strategic business plans appeared to be a balance of operational and strategic plans, and facilities perceived a greater need for new clinical, vice administrative, in- formation systems to support strategic planning processes. Administrators believed information systems should not be developed at the local level and perceived information sys- tems have the greatest impact on improving clinical quality outcomes, followed by ability to deliver cost effective care and finally, ability to increase market share. Keywords Strategic planning · Information systems · Medical · Effectiveness Introduction Many health care organizations are currently using the Internet, electronic medical records, coordinated disease management, and other information technologies. How- ever, quite often information systems (IS) are not in- corporated into the organizations’ strategic planning and decision-making processes [1]. As a result, the health care industry lags behind other industries in the strategic appli- cation of information technology [2]. A review of the health care strategy research literature has shown there is very lit- tle empirical research on the use of information systems G. A. Yap (B) Graduate Program in Health Care Administration, Army-Baylor University, Fort Sam, Houston, Texas e-mail: glenn.yap@amedd.army.mil E. A. Platonova The University of Alabama at Birmingham, Birmingham, Alabama P. F. Musa Department of Management, Marketing, and Distribution, The University of Alabama at Birmingham, Birmingham, Alabama in the strategic management process [3]. Other researchers have also shown the lack of empirical research on general corporate strategy [4]. Traditionally, hospital IS were designed to support op- erations and were primarily limited to the financial area. Hospitals sent bills, paid their workers, and kept the general ledger. With time, information technology started to have a more significant effect on patient management, decision support, and strategic planning. Accordingly, information management started to receive more attention from other areas of the hospital [5]. Today, hospital executives increas- ingly realize information technology considerably changes processes, systems, and people in their organizations and that IS should play a more significant role in strategic planning and strategy development [1]. It is now widely recognized that management should reassess and realign both their IS and corporate strategies and that alignment of strategy, business structure, and information technology is a fundamental management concept. Researchers have come to the conclusion that technology should be treated as a tool for achieving the mission, which is driven by strategic direction and a common focus [6–8]. Organizations should be more effective at collecting and analyzing clinical and market data, screening and organiz- ing the data into information useful to improve decisions about future activities of health care organizations. This process would result in a new strategic use of IS. Strategi- cally, utilization of information systems should be used in a structured and systematic manner to support the organi- zation in its production activities as well as fulfill the needs of employees [8, 9]. The Military Health System (MHS) currently spends over $10 billion annually to provide health care to its benefi- ciaries. Approximately $4.5 billion is spent annually on operating its medical treatment facilities (MTF), while an- other $6 billion is spent on purchasing health care from the civilian community that could potentially be recap- tured back into the MHS [10]. The Air Force Medical System (AFMS) comprises approximately one-third of the MHS. Like its civilian counterparts, Air Force MTFs pos- sess numerous IS that potentially can be used in aiding in 9