Question

When a health care organization grows along its channel of distribution toward the patient, it is called:

A. Forward vertical integration.
B. Horizontal integration.
C. Lateral integration.
D. Backward vertical integration.

Answer 1

Forward vertical integration is when a health care organization grows along its channel of distribution toward the patient. This strategy involves acquiring or merging with companies that are closer to the end consumer in order to gain more control over the delivery of products or services.

Step-by-step explanation:

When a health care organization grows along its channel of distribution toward the patient, it is called forward vertical integration. This strategy involves acquiring or merging with companies that are closer to the end consumer in order to gain more control over the delivery of products or services. For example, a health care organization might acquire a chain of retail pharmacies or urgent care centers to better serve patients.