Abstract

MERLANO-PORRAS, Carlos Andrés  and  GORBANEV, Iouri. Why is Vertical Integration Restricted in the Colombian Health Sector?. Rev. Gerenc. Polit. Salud [online]. 2011, vol.10, n.20, pp. 170-180. ISSN 1657-7027.

In Colombia, the Health industry is restricted from vertically integrating the Health Management Organizations (EPS) with the Health Service Providers (IPS) in order to avoid antitrust competitive conditions. However, the empirical evidence in this regard is inconclusive. This paper analyzes this antitrust hypothesis, contrasting it to the empirical and theoretical evidence at hand, and shows that vertical integration had no effect on EPS competition in the period after the restriction on 30% contracting between both types of entities was enforced.

Keywords : economics; resource allocation; organizations; economic competition; health care sector; Vertical integration; public utility regulatory politicies; health insurers; healthcare providers.