Question

1. Explain how vertical integration can impact a health care system.
2. Explain how a hospital's expansion into other services can strengthen their financial standing.
3. Explain how a hospital's expansion into other services can have a negative impact on a system by operating outside the scope of the hospital's mission statement.

Answer 1

1, Vertical integration in health service or health care system is an arrangement done by the organization that offers a broad range of patient care and service. It reduces the costs and improves coordination and increases overall opportunities and quality of care. example: when two physicians running clinic or hospital their decision making approach support and improve the quality care.
2, Many hospitals facing the problem with the economic conditions when they do expand the facilities, they can increase the profitability by reducing cost and increasing reimbursement and revenue. flexible staffing and timing as per patient census like hours worked per case can save facilities cost and help to maintain financial viability, approach vendors for discounts and ensure physician efficiency. make providers involve in cost reduction effort, have partnered with other physicians to reduce the competition in outpatient and inpatient service.
3, Hospital expansion into other service have a negative and positive impact. there is potential harm when the hospital becomes aligned. there will be challenges in health care reform in the hospital mission statements. cost of health care is unsustainable there will be antitrust enforcement and health policymakers that hospital consolidation has a more negative impact than positive consequences. there will be a deficiency in health infrastructure, lack of outreach, standards, etc. Health care reform needs gradual changes with federal regulations. The commitment is the source of mission. when a lack of mission statement there will not any commitment.