What does "vertical integration" refer to in health care systems?

Vertical integration in health care systems refers to the merger or consolidation of healthcare services and providers that operate at different levels of care within the same organization. This concept involves integrating various entities along the continuum of care, such as hospitals, outpatient facilities, and rehabilitation services, enabling a seamless delivery of care from one provider.

This can enhance efficiency, improve patient outcomes, and offer a more coordinated approach to treatment, as patients can receive all necessary services under one organizational umbrella. In a vertically integrated system, the organization has control over multiple stages of health care delivery, which can lead to better management of healthcare costs, streamlined services, and improved patient experiences, as the flow of information and care transitions are potentially smoother.

The other options represent different approaches to health care organization but do not specifically capture the essence of vertical integration, which focuses on the internal consolidation of services at various stages of care within a single organization.