Horizon and Vertical Integration

The integrated delivery systems encompassed two main types of integration whether vertical or horizontal. Therein; would like here to bring your attention to may the integration can be occurred at the system level or across a patient population. the degree of integration up or down differs according to market and working realities as number of services provided through integration system or/and sort or nature provider assimilation.

Horizontal integration is defined by the Pan American Health Organization as’’ the coordination of activities across operating units that are at the same stage in the process of delivering services.” Horizontal integration involves grouping organizations that provide a similar level of care under one management umbrella. It usually involves consolidating the organizations’ resources to increase efficiency and utilize economies of scale. Example of Horizontal integration;

ü  Multi-hospital system

ü  mergers

ü  strategic alliances with neighboring hospitals to form local networks

That for sure provides a society with good prestigious hospitals running under one management and protected by state law keep providers focusing on service provision and how to improve themselves to get their reimbursement according to pay for service business model former discussed. Therefore; that open good opportunity to improve financial and working situation may be was fit or on awaited level.

Vertical integration is defined by the Pan American Health Organization as “the coordination of services among operating units that are at different stages of the process of delivery patient services. Vertically integrated systems are intended to address the following:

Efficiency goals:  

ü  manage global capitation

ü  form large patient and provider pools to diversify risk

ü  reduce cost of payer contracting

Access goals

ü  offer a seamless continuum of care

ü  respond to state legislation

Quality goals

The core of difference between vertical and horizontal integration has lied in level of service provision; horizontal integration provides similar level of care under one management umbrella while vertical integration involves group organizations provide different level of care under one management umbrella. this kind of integration produce alliances with: physicians, hospital, service management facilities, academic medical centers, long term care facilities and home care facilities and numerous services could enhance health welfare of society. full health J