The Economic Case for Vertical Integration in Health Care

Abstract

SummaryThere is an economic case to be made for the vertical integration of health care delivery and financing as the model best suited for owning the whole patient, as we introduce the term. This entails complete responsibility for a patient, spanning coverage, care delivery, and administrative processes. Owning the whole patient requires aligning financial incentives between providers, payers, and patients; establishing holistic access by providers and payers to patient health data, coupled with analytics tools to guide care management and coordination; and developing seamless and personalized consumer experiences around administration of care and coverage. Vertically integrated models of care and coverage that achieve these requirements have the potential to lower health care costs, improve care quality and outcomes, and enhance the patient experience.