Vertical Integration: A Double-Edged Sword

Vertical integration in healthcare involves major insurers acquiring pharmacies, pharmacy benefit managers, and providers to manage all patient care aspects independently. This approach is designed to improve care coordination and align financial incentives between payers and providers. By integrating these roles, insurers might benefit financially by minimizing unnecessary care, which could theoretically enhance efficiency. However, the effectiveness and implications of such integration remain complex and context-dependent.