CHAPTER 3

Industry Organization and Competition

Industry Structure

In chapter 1, we explore several hospital structures—privately owned, government owned, and university-based teaching hospitals that include both a public and private wing. This chapter discusses a health delivery system that involves more than the hospital itself, but interrelated players. According to Porter and Lee (2013), health care organized among vertically integrated groups (VIG) is a strategy that will fix health care.1

Vertically Integrated Groups

VIGs are institutions that perform a series of functions within the healthcare delivery system. Sentara is one that integrates with the healthcare insurance market, medical schools, and other areas among them. In 1990s, before ...

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