Pros And Cons Of Vertical Integration

Horizontal integration consists of expanding a service through buying the competence or joining them to create a stronger company that provides the same service. Vertical integration is when a company creates or manages its own providers or created or manages the distribution services. When we think, how a healthcare facility works, we can easily imagine the concept of a human body, going from head to the toes. In the same ways, healthcare facilities need a network of providers in almost every healthcare service. The way that organization deals with providers and distributors to assure the outcome of a service or a produce for a population, it is called integration and integrated organization is also called Integrated Delivery Systems (IDS).

All the benefit goes to providing education, which MedStar stands one of the largest graduate medical education programs in the country and trained 1,1000 medical residents annual. In addition to being a teaching hospital, MedStar also delivers prevention and treatment of benefits towards all of the community members. According to an article in Academy Health (Summer, 2010), “A challenge for policymakers is to develop policies that not only promote integration, but also help maintain well-functioning, competitive health markets”(pg. 1). In other words, by expanding MedStar Health to partner with local small businesses as well as minority, woman and veteran businesses, for the purpose of strengthening and creating value towards

LabCorp clients include physicians, patients and consumers, biopharmaceutical companies, government agencies, managed care organization, hospitals, and clinical lab (LabCorp, 2015). To put it in another way, LabCorp provides 70% of innovative, high-quality and timely medical laboratory tests and services towards helping physician with patient health care decisions. Some of the service labcorp provides beside the basic labs that we all get once a year, they also provide allergy, anatomic pathology, cardiovascular disease and cell line authentication to name a