Treating appropriately unequally those who are unequal in some morally relevant sense. Commonly met vertical equity principles include 'higher contributions from those with greater ability to pay\ 'more resource for those with greater need for resource' and 'lower priority for lower deservingness'. Cf. Horizontal Equity. See Equity.
This entails the bringing together in managed units activities or firms that were previously separate. It generally comes in one of three forms: backward vertical integration, forward vertical integration and balanced vertical integration. Under backward vertical integration, an organization has subsidiaries producing inputs used in the production of its 'upstream' products. Under forward vertical integration, an organization has subsidiaries that distribute or market products 'downstream' to customers or use the products themselves. Under balanced vertical integration, an organization has both upstream and downstream subsidiaries. Health care is characterized by a variety of types of integration (or lack of it). Examples of its absence are the existence (in the USA) of doctors contracting with hospitals for use of their beds and provision of professional services to the patients in them, and (in most countries) the complete absence of any kind of coordination between health care services and community-based social care services.
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