Research Paper on:
Vertical Integration in Health Care Systems

Unformatted Sample Text from the Research Paper:
health care industry. One of the most erroneous assumptions within these changes is that the utilization of vertically integrated health systems will always demonstrate a reduction in costs.  The problem addressed within this study is that the inappropriate utilization of vertically integrated health care systems can instead cause a rise in costs for health care organizations. This  problem is significant within the health care industry because the expense of providing care and determining successful systems of organization is necessary to the continuity of care provided. As  a result, serious inappropriate use of vertically integrated health care systems can have detrimental impacts for both the businesses and the clients for whom they provide services. This study will  determine the most effective administrative characteristics used to demonstrate appropriate utilization of vertically integrated health systems. The characteristics to be studied will include management philosophy, business structures, employee distribution  and the use of information systems (IS) technologies within health care systems currently utilizing vertical integration. II. Chapter Two: Review of Literature Vertical integration in health care  systems is at the heart of the current trends towards managed care systems, and is designed to manage competition as a part of market-based reforms (Beresford, 1996). It has  readily been recognized that the entire system of health care reform is moving towards vertical integration, in which full-service medical care providers will result (Karon, 1996). The main concept  behind vertical integration is in combining many different types of health care organizations in order to provide everything from home health care to hospitals and outpatient surgery clinics under one  roof (Karon, 1996). There is considerable evidence in the exiting literature that the health care industry is moving increasingly towards levels of vertical integration as a means of business