The Primary Care Practices : Newland Hospital Has Created A Health System

The Primary Care Practices : Newland Hospital Has Created A Health System

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By purchasing the primary care practices, Newland Hospital has created a health system. Health systems (HSs) are formerly associated health services organizations (HSOs) that have joined together for a multitude of reasons. HSs arise from a mutual need and a willingness among the participating HSOs/HSs to share knowledge, capabilities, risk, and costs to leverage innovation, and to take advantage of complementary strengths and capabilities (Longest & Darr, 2000, pg. 609). Additionally, such an integration unifies ownership of tangible and intangible assets, creates economies of scale, and expands the pool of patients. This particular form of integration is referred to as vertical integration, the coordinating, linking, or incorporating within a single organization 's activities or entities at different stages of the production process- in healthcare the process of producing and delivering patient care (Longest & Darr, 2000, pg. 93).
A vertically integrated health care system is an arrangement whereby a health care organization offers, either directly or through others, a broad range of patient care and support services (Conrad & Dowling, 1990). Vertical integration is multifaceted, it can either occur forward or backward. In this case, the hospital is backward integrating as it is acquiring the process that comes before it; the facilities that refer the patients to the hospital. On the other hand, if the hospital was acquiring a physical therapy practice it would be participating in forward integration as hospitals refer outpatient patients to inpatient practices.
Vertical integration, whether backward or forward, has several advantages and disadvantages. One of the greatest advantages of vertical integration is supply assuranc...


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... attributes that are applicable in this case, including determining a focus, developing a plan, and implementing the organization’s focus.

To improve the health care delivery system composed of the primary care practices and Newland Hospital a focus must be established. In this case, the main focus of the HS should be to align the individualized HSOs into a fully integrated system. In order to do so, a plan must be developed that encompasses the needs of all of the separate entities of the HS. The success of the plan is contingent on the inclusion of the employees in the planning and implementation process as it enhances acceptances of the strategic plan and the employee’s commitment and motivation (Longest & Darr, 2000, pg. 352). As previously mentioned, there must be a level of commitment, total involvement, and collaboration of all entities in order to succeed.

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