Organizational Approaches to Integrated Health Care Delivery: A Taxonomic Analysis of Physician-Organization Arrangements

Abstract

Integrated health care organizations depend fundamentally on bringing organizations and physicians into closer alignment. Little empirical research has been conducted on the organizational mechanisms by which such alignment is attempted. This study employed primary data from 79 hospitals and health care systems to identify current approaches to aligning the strategic and economic interests of organizations and physicians. An empirical classification of both unbundled and structured physician-organization arrangements (POAs) resulted in 5 distinct strategic configurations. These configurations were differentiated by key contextual factors that shape patterns of development and operation of POAs. Particularly salient among these were managed care penetration, organization size, locus of control, and organization strategy. Results of the taxonomic analysis underscore the facts that most delivery organizations employ multifaceted rather than single approaches to physician integration and that these approaches are endemic to particular environmental and organizations conditions.