Question

Adding a skilled nursing facility is an example of

vertical integration

A)true
B)false

Answer 1

Yes, adding a skilled nursing facility is an example of vertical integration as it expands a hospital's continuum of care services.

Step-by-step explanation:

Adding a skilled nursing facility is indeed an example of vertical integration. Vertical integration occurs when a company expands its business operations into different steps on the same production path. In healthcare, for instance, a hospital's acquisition of a skilled nursing facility can be considered vertical integration as it allows the hospital to offer a continuum of care services, ranging from acute care to rehabilitation and long-term care.

In this case, by adding a skilled nursing facility to their operations, an organization could become vertically integrated by controlling both the healthcare provider and the post-acute care services for patients.