Vertical integration; local healthcare unit; theory of transaction costs; productive efficiency
Abstract
The Local Healthcare Unit (Unidade Local de Saúde) is a vertically integrated model comprising Primary Health Care, Hospital Care and Continued Care, which emerged in 1999 as a pioneering project with the Matosinhos Local Healthcare Care Unit and currently has eight implemented and operational Local Health Care Units. The objective of this paper is to review the literature with the aim of evaluating the existing integration in the Local Health Units, including possible economical grounds for the Vertical Integration in health care. After reviewing the concept of Vertical Integration and of the economic fundamentals for Vertical Integration, it is verified that the Local Health Units present the conditions and grounds for a correct integration.
