ECONOMIC FUNDAMENTALS FOR VERTICAL INTEGRATION

According to received economic theory, vertical integration is mainly justified with the occurrence of productive efficiencies in addition of transaction costs between production stages. The present study aims to confirm the presence of these factors in the health care sector, thus justifying the urgency of vertical integration operations of the different health care stages. It is proposed an analysis of the vertical integration efforts in the Portuguese Health Sector, that comprises an attempt to decipher the benevolence and congruence of its catalysts, solutions and results. In addition, the results obtained with international operations of vertical integration are briefly reviewed and discussed, namely the positive outcomes regarding lifestyle diseases. It is generally expected that vertical integration in the health care sector should deliver more efficient and better health care to the populations, badly needed in low-income countries.