Abstract: Before meaningful gains in improving the value of health care in the
US can be achieved, the fragmented nature in which health care is financed and
delivered must be addressed. One type of healthcare organization, the
Integrated Delivery System (IDS), is poised to play a pivotal role in reform
efforts. What are these systems? What is the current evidence regarding their
performance? What are the current barriers to their establishment and how can
these barriers be removed? This chapter addresses these important questions.
Although there are many types of IDS' in the US healthcare landscape, the
chapter begins by identifying the necessary healthcare components that
encompass an IDS and discusses the levels of integration that are important to
improving health care quality and value. Next, it explores the recent evidence
regarding IDS performance which, while generally positive, is less than what it
could be if there were greater focus on clinical integration. To highlight, the
chapter discusses the efficacy of system engineering initiatives in two
examples of large, fully integrated systems: Kaiser-Permanente and the Veterans
Health Administration. The evidence here is strong that the impact of system
engineering methods is enhanced through the integration of processes, goals and
outcomes. Reforms necessary to encourage the development of IDS' include: 1)
the development of payment mechanisms designed to increase greater
inter-dependency of hospitals and physicians; 2) the modification or removal of
several regulatory barriers to greater clinical integration; and 3) the
establishment of a more robust data collection and reporting system to increase
transparency and accountability. The chapter concludes with a framework for
considering these reforms across strategic, structural, cultural, and technical
dimensions.