2INTEGRATIONIntegrationHorizontally integrated system and vertically integrated health system The horizontally integrated health organization selected in this assignment is Sunrise Senior Living. It started as a community in 1981 has continued to grow since its inception. Currently, it has about 300 senior living facilities located in different countries such Canada, U.S, and the United Kingdom and serves over 30,000 residents in communities (Sunrise Senior Living, 2016).The facility’s operations are based in McLean, Virginia. The healthcare organization aims at redefining senior living care by offering patient-oriented care that aligns with the health needs of the residents and adheres to the healthcare standards established in the healthcare industry. Cleveland Clinic was selected as a vertically integrated healthcare organization. Cleveland Clinicis a multispecialty healthcare organization operating under a non-profit model that is based on Cleveland, Ohio. The healthcare organized is managed by Cleveland Clinic Foundation (Cleveland Clinic, 2016). The main healthcare facility has 1400 bed-capacity and about 4500 beds system wide. The organization’s capital base is an indicator of its size. In 2011, the healthcare organization was reported to have generated over $9 billion in gross total patient revenue. This makes Cleveland Clinic one of the largest healthcare organizations in the US. Rationale Growth was the rationale that influence Sunrise Senior Living to horizontally integrate. The organization has expanded to other countries by establishing senior care facilities. An example ofthe organization’s growth is the acquisition of various senior living properties. The organization acquired Marriott senior living facility which had several resident facilities with a capacity of over 23000 (Sunrise Senior Living, 2016). The organization also acquired land and other assets
3INTEGRATIONowned by Marriott Senior living. These acquisitions enabled the company to establish presence in specific areas and expand it services to many communities. The organizations seek to gain economies of scale and leverage through the acquisitions as they will increase its revenues. Sunrise acquired lease payments that had an operating cash flow. This helped the organization to shift towards becoming a management services company. As a result, the organization has built arobust and stable stream of revenue based on long-term management contracts. Acquisition of senior living facilities such as Marriott has offered the company the opportunity to diversify its brand by expanding its senior care services (Sunrise Senior Living, 2016). Through expansion into new markets, Sunrise has increased its customer base. Also, the wide array of services it offers has enabled it to tap into a broad, and growing market as well as become one of the leading senior care providers in the United States' market. Competitiveness was the rationale that influenced Cleveland Clinic to vertically integrate. The healthcare organization sought to gain a competitive edge in the market via the vertical integration strategy. The healthcare organization gas access to some of the best talent obtained from its college (Cleveland Clinic, 2016). This implies the organization has a skilled workforce that can achieve organizational objectives. The clinic has several ambulatory surgery and family health centers operating in Cleveland. These centers have enabled the organization to provide care to a large audience. Cleveland clinic has expanded by opening several care centers including a multi specialty hospital in Florida and an outpatient clinic in Toronto (Cleveland Clinic, 2016). The clinic provides a range of healthcare services hence serves a large community. Currently, the clinic nine regional hospitals and several family health centers. Through vertical integration strategy, Cleveland clinic has invested in developing new hospitals and clinics which have enabled it to
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