Essay On Vertical Integration

“An Integrated Physician Model is the result of a series of partnership between hospitals and physician develop overtime” (Harrison, 2016). Primarily, it is a joint venture that has become many joint ventures. In addition, all of this joint ventures are connected through congruent goals, and that is to provide different level of care to all the patients. Integrated physician model also organizing themselves to improve the cost and quality by operating under a clinical guideline. This could include acute care hospital, home care, nursing homes, affiliated medical group, primary care clinics, employed physician and any independent medical groups.

Porter’s five forces analysis provides a methodology to evaluate the external markets. Its consideration of substitutes, threats and power of buyer and supplier assists with the development of an integration strategy. A thorough analysis can isolate attractive opportunities in support of building a profitable business model. These strategies can leverage vertical and/or horizontal integration of new business entities. These entities are designed to help with growing market share, increase efficiencies and/or reduce costs. During the 1990’s many hospitals pursued a combination of both vertical and horizontal integration. The goal was to create an integrated delivery network (IDN) designed to improve their economic performance.

Florida Hospital has grown to be one of the largest healthcare providers in the United States. Impressively, Florida Hospital had a very humble beginning and a modest growth. In 1908, a small group of Seventh Day Adventists in Orlando developed their vision of bringing health care to the area. As part of their philanthropy, they were able to raise the funds necessary to purchase Florida Hospital’s first facility near Lake Estelle. It was a two story farmhouse that had a wraparound porch and had once served those needing treatment for tuberculosis. The facility had the capacity to care for 20 patients at any given time.

Following an organization announcement in 2015, the healthcare system was divided into four divisions headed by a leadership team of 5 that oversee all the divisions. The second division consists of the 3 regional hospitals associated with the New York Presbyterian system. Often hospitals associated with a healthcare system are hospitals waiting on approval from the city and HCOs involved. The 3rd division consists of NY-Presbyterian physician services. Lastly, the fourth division consists of all the health services that make up the health care system’s community and population health. These services include ambulatory care network sites and healthcare initiatives. As a Highly Reliable Organization, New York Presbyterian keeps track of multiple trends to shift and shape it’s organization for today’s always changing and complex healthcare industry. Through the tracking of consumer healthcare decisions, New York-Presbyterian uses this data to adjust its practices and policies to help patients make the best medical decisions and provide the highest quality of care. Positioned in one of the biggest metropolitan areas in the world, New York-Presbyterian keeps track of it’s competition by monitoring the consolidations of healthcare organizations within their market share. Through this monetization, the healthcare system prioritize its marketing strategy that allows them to sell the unique

Recently, many healthcare organizations are merging and creating partnerships with other health organizations with an aim of ensuring long-term financial feasibility. According to records and statistics, the number of hospitals that merged between 2009 and 2012 doubled significantly. According to an article that was published by the New York Times, the number of hospitals and health facilities merging is expected to increase in the next few years. Mergers have brought about manifold changes in the health sector in terms of connecting data from frantic electronic health records and in making the healthcare systems interoperable (Informatics in healthcare, 1992).

America's healthcare system is fragmented with a lack of coordination, that tends to be insufficient in using its resources (Enthoven, 2009). This fragmentation has lead to unsustainable cost, poor overall quality of care, and treatment inequalities (Strange, 2009). While there have been initiatives to integrate healthcare in the past, the need today is direr than ever (Ramagem et.al, 2011). If more healthcare systems would use vertical integration, we could see the three systems of care: hospitals, long-term care, and mental health be utilized in a more conformed pattern. Vertical integration utilizes inpatient hospitals, mental health services, rehab centers, long-term care, and other related health care services and incorporates them

integrated health care systems and group purchasing organizations. It takes on the financial risk of owning and

Integrated Managed Care Organization- The organization is properly aligned for the primary driver being cost cutting services. Since all entities within the organization are responsible and affected by any expenses endured on any entity being unfavorable or favorable, the foundation serves as a primary motivator to reduce costs at all levels. This alignment eliminates any financial gains from driving high utilization of services or higher intensity services within the organization. Ultimately, this system allows the physician medical group to drive care, being responsible for the clinical care decisions as opposed to health plan making those decisions as designed in other organizations. This is the preferable model for Medicaid systems as

Bohmer, R., & Knoop, C. I. (2007). The challenges facing the U.S. healthcare delivery system. Harvard Business School, Article 9-606-096.

The vertical integration of J&J into health services was a win-win for the company, employers targeted as customers, and employees (Sarasohn-Kahn, 2008). The expanded growth capability through acquiring companies in the downstream will continue to help the organization offer more products and services. The current problem is that with various product offerings the quality and safety guidelines may have been overlooked. The product recalls have been a result of poor quality management and errors in the manufacturing process. The key benefits of backward vertical integration are: more control over the manufacturing of J&J products, advanced technology, and more trusted industry experience. If J&J has greater control over the upstream (selection of raw materials, production, manufacturing, marketing, and distribution) then greater stability and higher quality goods will be sent to retailers.

Integrated delivery service (IDS) is a coordinated, integrated system which helps in eliminating waste from unnecessary, unsafe care. This is crucial for improving quality and reducing costs. Modern healthcare system is very complex with wide variation in practices and cost of services. Also, there are dearth of guidelines, utilization and quality management, collaboration, peer review process and low accountability. All this has made healthcare more fragmented. The opposite of this fragmented care is organized, coordinated and collaborative network that: 1) link various healthcare providers, via economic, non-economic and clinical way in order to provide coordinated care and 2) is accountable, both clinically and economically for better patient

The successful business of a hospital organization comes with the cooperation of our medical physicians and the tasks they handle in medical services to our patients. It also comes with the achievements of fundamental tools used to succeed in the healthcare organization. We use relative concepts that impact the efforts in which are made to be managed in the best practices. With the integrated physician model, understanding the partnerships we gain between most of the hospitals, primary care clinics and independent medical groups is defined as supporting the integrated physician model (Harrison.2016). We can tie this model with joint ventures and see the similarities in healthcare services, mainly with the characteristics between the successes of hospitals through our physicians. The joint ventures align with hospitals and their implementations of financial and scope terms that engage our physicians with providing adequate patient care and strategies for a growing organization. Physician integration can take a variety of forms. We know that hospitals can hire and contract out physicians to provide more of an impact in the healthcare networks that gives a more marketable share. This employment provides us with a growing progression of our hospitals and various other clinics. We should look at this with an innovative framework because it is generated to improve the relationships between the hospitals and the competing medical teams (Amgwerd.et al.2017). This same framework can

The Affordable Care Act (ACA) strives to improve the quality of the lives of Americans. The most current healthcare policy that endorses the ACA, is the ObamaCare initiative that has received a fair share of both support and criticism. (Hwang, et al. 2013) talks about the “Effects of the integrated delivery system on cost and quality”. According to the authors, most people criticize the American healthcare system because of its complexity, high cost and excessive fragmentation. The same scholars confirm however that the fragmentation and the provision of various services, benefit different people that require healthcare attention. The article focuses on several advantages of the integrated healthcare delivery systems (IDSs) in the United States. Furthermore, the scholars identify existing gaps, which include the various arguments of current health policy experts that have endeavored to discuss health policy issues in America. Americans can also access health care services through virtual technologies, which allow them to have different electronic health record databases. (Hwang, et al. 2013) uses relevant materials from peer reviewed and non-peer reviewed articles to describe the fluctuating nature of healthcare service delivery in America. Conclusively, the authors agree that the virtual systems create room for accountability, academic research in healthcare and efficient service delivery.

Inter-entity structure and management is used to management structures, processes, and relationships can be put in place to facilitate the coordination of care across services. It is importance for continuum of care because it ensures channels of communication and cooperation. This will establishes clear lines of authority for health care providers and organization to follow. It will require accountability and responsibility for the client services, negotiates budgets and financial trade-offs. Inter-entity will also address issues of risk management and liability, gathers

All in all, in this assignment I answer three questions. These questions are very important for any company that related to produce product in fast fashion like Zara Company. So, the question in this assignment was talked about what is the supply chain for Zara Company from raw material to customer and what is the disadvantages and advantage for fast fashion and the last question is about the horizontal and vertical