Integrated Health Care Delivery Based on Transaction Cost Economics: Experiences from California and Cross-National Implications

Abstract

Integrated health care delivery (IHCD), as a major issue of managed care, was considered the panacea to rising health care costs. In theory it would simultaneously provide high-quality and continuous care. However, owing to the backlash of managed care at the turn of the century many health care providers today refrain from using further integrative activities. Based on transaction cost economics, this chapter investigates why IHCD is deemed appropriate in certain circumstances and why it failed in the past. It explores the new understanding of IHCD, which focuses on actual integration through virtual integration instead of aggregation of health care entities. Current success factors of virtually integrated hybrid structures, which have been evaluated in a long-term case study conducted in the San Francisco Bay Area from July 2001 to September 2002, will elucidate the further development of IHCD and the implications for other industrialized countries, such as Germany.

Citation

Janus, K. and Amelung, V. (2005), "Integrated Health Care Delivery Based on Transaction Cost Economics: Experiences from California and Cross-National Implications", Savage, G.T., Chilingerian, J.A., Powell, M. and Xiao, Q. (Ed.) International Health Care Management (Advances in Health Care Management, Vol. 5), Emerald Group Publishing Limited, Leeds, pp. 117-156. https://doi.org/10.1016/S1474-8231(05)05005-6