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Updated: May 4, 2026

Assessment of Dependence in Activities of Daily Living Among Older Patients in an Acute Care Unit
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Published on: September 30, 2020

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Integration and Task Allocation: Evidence from Patient Care.

Guy David1, Evan Rawley2, Daniel Polsky3

  • 1The Wharton School, University of Pennsylvania and NBER, 202 Colonial Penn Center, 3641 Locust Walk, Philadelphia, PA 19104-6218.

Journal of Economics & Management Strategy
|January 14, 2014
PubMed
Summary
This summary is machine-generated.

Vertical integration in healthcare improves patient transitions by optimizing task allocation between hospitals and post-acute care facilities. This leads to better coordination and maintained or improved patient health outcomes.

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Last Updated: May 4, 2026

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06:52

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Published on: September 30, 2020

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Area of Science:

  • Health Services Research
  • Organizational Economics
  • Healthcare Management

Background:

  • Patient transitions from hospital to post-acute care settings present coordination challenges.
  • Task misallocation between healthcare organizations can lead to inefficiencies.
  • Understanding the impact of organizational integration on care delivery is crucial.

Purpose of the Study:

  • To examine how vertical integration affects task allocation during patient transitions.
  • To assess the impact of integration on healthcare costs and patient outcomes.
  • To determine if integration resolves coordination problems in healthcare markets.

Main Methods:

  • Analysis of patient transition data from inpatient hospital care to skilled nursing facilities and home health care in 2005.
  • Comparison of task allocation and resource utilization in integrated versus non-integrated systems.
  • Evaluation of health outcomes associated with different care transition models.

Main Results:

  • Vertical integration enables hospitals to shift recovery tasks to lower-cost downstream organizations.
  • Hospitals discharge patients earlier and increase post-hospitalization service intensity under integration.
  • Health outcomes were either improved or unaffected on average following integration.

Conclusions:

  • Vertical integration effectively addresses task misallocation problems in patient transitions.
  • Integration improves coordination across different care settings, optimizing resource use.
  • The study provides evidence that integration solves market coordination issues through better task allocation.