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 ...

Get A Profile of the Health Management Industry now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.