Vertical integration and organizational networks in health care. Academic Article uri icon

Overview

abstract

  • This paper documents the growing linkages between primary care-centered medical groups and specialists and between physicians and hospitals under managed care. We evaluate the two alternative forms of organizational coordination: "vertical integration," based on unified ownership, and "virtual integration," based on contractual networks. Excess capacity and the need for investment capital are major short-term determinants of these vertical versus virtual integration decisions in health care. In the longer term, the principal determinants are economies of scale, risk-bearing ability, transaction costs, and the capacity for innovation in methods of managing care.

publication date

  • January 1, 1996

Research

keywords

  • Community Networks
  • Delivery of Health Care, Integrated
  • Health Maintenance Organizations

Identity

Scopus Document Identifier

  • 0001802470

Digital Object Identifier (DOI)

  • 10.1377/hlthaff.15.1.7

PubMed ID

  • 8920566

Additional Document Info

volume

  • 15

issue

  • 1