Vertical Integration Definition

Decent Essays

Pricing: It is evident from all of the studies reviewed that integration of physicians into hospital-based system results in increased pricing. Another noteworthy finding is that some studies also showed that integration results in higher expenditures which are contrary to what is touted as a benefit of integration, i.e. more efficient care and a reduction of unnecessary or duplicative testing.
Quality & Patient Satisfaction: The literature also demonstrates that vertical integration does not lead to improvements in the quality of care or patient satisfaction. In fact, the results of the studies show that compared to hospitals, physician run enterprises deliver higher quality care, which was generally established through lower hospital …show more content…

A recent study may shed some light on the reasons for the success of smaller physician practices, which concluded that organizational features might reduce the risk of death within 30 days of admission for patients with AMI. In fact, strong engagement from senior managers and staff, along with clear goals and values were cited as some specific organizational features which led to this reduction in admission rates for AMI (Berenson & Rice, 2016). Employee engagement as an organizational success factor noted in the previous survey stands to reason. Consider the fact that strong employee engagement has been linked to higher quality patient care, patient satisfaction and patient engagement (91Engagement, 2013 ). To build further on this, another recent study which found that 36% of small company employees reported being “fully engaged” with their jobs, compared with 29% of those who worked for larger companies. Could this difference in the employee engagement levels at least partially explain the disconnect between quality in smaller and larger health systems? The authors of this same study explain that in a large organization, an employee assesses their engagement on their relationship with their direct boss, as opposed to workers in smaller organizations who base their …show more content…

Additionally, policymakers should consider the merit of including employee engagement metrics as part of a pay for performance strategy for larger health systems. While the mechanics of the deployment of an employee engagement strategy are beyond the scope of this paper, clearly a good starting point is to foster an environment which emulates aspects of the private practice

Get Access