Vertical Integration

613 Words3 Pages
The process of mergers and acquisitions, and a system dedicated to providing continuum of care has occurred because of vertical and horizontal integration. According to The Evolution of Integrated Healthcare Strategies “it is widely believed that the greater alignment and synergy achieved through integration enhances quality of care, efficiency and patient satisfaction.” There are two integration strategies, one being horizontal integration, and the other being vertical integration. Horizontal integration is consolidation of two or more hospitals or other entities under one owner through merger or acquisition. Vertical integration is a process through which one entity unites related and complementary organizations to create a system that provides a continuum of care. There are many advantages of integration and it is a step further in improving health care for patients. Horizontal Integration “are aggregation that produce the same goods or services (Sultz, H., & Young, K. (2014). It involves mergers of comparable organizations, such as acute-care, psychiatric, or…show more content…
It is a vertically integrated system that encompasses medical and health related services required throughout an individuals’ life span (Sultz, H., & Young, K., 2014). They are organizations that operate a variety of business entities, each which is related to the other. Unlike horizontal integration, vertical integration is fully comprehensive, with complete continuum of services. Due to this a vertically integrated system is able to “offer attractive benefits to their sponsoring organizations, patients, physicians, and other providers, as well as payers (Sultz, H., & Young, K., 2014).” As a result, this system attracts many patients. More patients are great for health providers, as well. Hence, the vertical integrated system is ideal for both the patient and the provider. Yet, the vertical integration disadvantage is the
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