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Integration of Health Systems

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Consider the ways in which two health systems are similar to and/or different from one another.
Assess the business and health care-related implications of horizontal and vertical integration of your selected health systems. How does integration impact the management of your selected organizations and the patients/consumers they serve, especially in terms of cost, quality, and access?

Select one of the following horizontally integrated health systems:
• National Surgical Hospitals
• Select Medical Healthcare
• Sunrise Senior Living
• Labcorp
• Quest Diagnostics
• Pfizer Pharmaceuticals
Also select one of the following vertically integrated health systems:
• Kaiser Permanente
• Mayo Clinic
• Cleveland Clinic
• MedStar Health
• Memorial Hermann Healthcare System Houston

3-4 pages
1) Compare the horizontally integrated health system and the vertically integrated health system you have selected (e.g., size, settings/locations, and types of services).

2) Explain each health system's rationale for pursuing integration and the strategies it has used to achieve integration.

3) Assess the business and health care-related implications of integration for your selected health systems, including how integration impacts the patients/consumers the organization serves.

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The response provides you a structured explanation of integration of health systems . It also gives you the relevant references.

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1. The horizontally integrated health system selected by me is Pfizer Pharmaceuticals. It is an American global pharmaceutical company and is among the world's largest pharmaceutical companies in the world. The company is listed on the New York Stock Exchange and its shares are a part of the Dow Jones Industrial average. The location of Pfizer's headquarters is in New York City and its research headquarters are in Groton, Connecticut. The company makes pharmaceuticals the most prominent of which are Lipitor, Lycrica, Diflucan, Zitromax, Viagra, and Celebra, The 2015 revenues of Pfizer are $48.85 billion.
The vertically integrated healthcare system selected by me is the Cleveland Clinic. It s a multispecialty academic hospital located in Cleveland Ohio. This clinic is owned and operated by Cleveland Clinic Foundation. Apart from this main facility, Cleveland also operates affiliated facilities at Florida, Nevada, Canada, and United Arab Emirates. The main setting of the clinic consists of 41 buildings on 160 acres near University Circle in Fairfax Cleveland. The size of Cleveland can be estimated from its finances. According to 2011 data its annual gross total patient revenues in hospitals were $9.14 billion which was the second largest in the United States.

2) The rationale for pursuing horizontal integration for Pfizer is growth. Pfizer has made major acquisitions during the 21st century that include Warner-Lambert, Pharmacia, Wyeth, and King Pharmaceuticals. ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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