Jove
Visualize
Contact Us
JoVE
x logofacebook logolinkedin logoyoutube logo
ABOUT JoVE
OverviewLeadershipBlogJoVE Help Center
AUTHORS
Publishing ProcessEditorial BoardScope & PoliciesPeer ReviewFAQSubmit
LIBRARIANS
TestimonialsSubscriptionsAccessResourcesLibrary Advisory BoardFAQ
RESEARCH
JoVE JournalMethods CollectionsJoVE Encyclopedia of ExperimentsArchive
EDUCATION
JoVE CoreJoVE BusinessJoVE Science EducationJoVE Lab ManualFaculty Resource CenterFaculty Site
Terms & Conditions of Use
Privacy Policy
Policies

Related Experiment Videos

Is vertical integration adding value to health systems?

T P Weil1

  • 1Bedford Health Associates, Inc., Asheville, North Carolina, USA.

Managed Care Interface
|November 7, 2000
PubMed
Summary
This summary is machine-generated.

Related Concept Videos

You might also read

Related Articles

Articles linked to this work by shared authors, journal, and citation graph.

Sort by
Same author

Responding to challenges in health management education.

The Journal of health administration education·2002
Same author

Fiscal options for America's best hospitals.

Managed care interface·2001
Same author

Horizontal mergers in the United States health field: some practical realities.

Health services management research·2001
Same author

Commentary: public disclosure in the health field: is there a relevant option?

American journal of medical quality : the official journal of the American College of Medical Quality·2001
Same author

Evaluating a system chief executive. Eight questions trustees should ask themselves about CEOs and CEO candidates.

Health progress (Saint Louis, Mo.)·2000
Same author

How to enhance the efficacy of health network growth.

The International journal of health planning and management·2000
Same journal

Changes in hospital readmissions for diabetes-related conditions. Differences by payer.

Managed care interface·2008
Same journal

Heart disease and managed care.

Managed care interface·2008
Same journal

A conversation with James K. Min, MD.

Managed care interface·2008
Same journal

Acute coronary syndromes.

Managed care interface·2008
Same journal

Improving outcomes in cardiovascular disease.

Managed care interface·2008
Same journal

The effect for oncology of the national coverage determination for erythropoiesis-stimulating agents.

Managed care interface·2008
See all related articles

Vertical integration in healthcare, aiming for efficiency and market reach, often fails. Health systems experience poor financial results when acquiring practices or launching health maintenance organization (HMO) plans.

Area of Science:

  • Health Services Research
  • Organizational Economics
  • Healthcare Management

Background:

  • Vertical integration is a strategy employed by health systems to enhance economies of scale, service coordination, and market presence.
  • This approach involves consolidating various healthcare services under a single organizational umbrella.

Purpose of the Study:

  • To evaluate the real-world outcomes of vertical integration within the healthcare industry.
  • To compare the effectiveness of vertical integration in healthcare with its application in other economic sectors.

Main Methods:

  • Comparative analysis of healthcare organizations that have implemented vertical integration.
  • Review of financial performance data for health alliances, physician practice acquisitions, and health maintenance organization (HMO) plan formations.

Related Experiment Videos

  • Benchmarking healthcare outcomes against those reported in non-healthcare industries.

    • Main Results:

    • Vertical integration in healthcare has demonstrated poor fiscal performance.
    • Acquisition of physician practices by health alliances has led to negative financial outcomes.
    • Establishment of in-house health maintenance organization (HMO) plans by health systems has also resulted in financial underperformance.

    Conclusions:

    • The organizational model of vertical integration is not well-suited for the healthcare industry.
    • The anticipated benefits of economies of scale and improved coordination are often not realized in integrated health systems.
    • Alternative organizational strategies may be more effective for achieving financial stability and operational efficiency in healthcare.