J C Robinson and L P Casalino
Health Affairs, 1996
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.
Section: Making Integration Work
Sector: Primary health care
Organization type: Hospital
Professions: Doctors or physicians
Integration type: Back office, Behind the scenes, Clinical/service, Vertical
Organization size: Large
Document type: Research and analysis
Administrative concerns: Financial
Source: Other non-governmental
Click on the category links above to find related resources.