Assignment task:
Textbook: Strategic Healthcare Management, Planning & Execution, 2nd Edition. Stephen L. Walston, ISBN- 13: 978-1-56793-960-6
Page 365 The Case of Humana and Vertical Integration
Essay Questions:
1. What can hospitals considering vertical integration learn from Humana's mishaps?
2. Why did Humana integrate and then evolve into a managed care company?
3. Did Humana act most efficiently by divesting its provider assets?
4. What might the company have done to overcome problems inherent in managing both provider and Insurance operations?
5. Did Humana have difficulty transferring managerial knowledge across business lines? Why or why not?
6. Was vertical integration an issue as a result of the four problems mentioned in the case, or is it an issue in all large organizations?
7. How can largens affect the managerial ability of a company such as Humana?