Final answer:
Vertical integration is a business strategy where a firm grows by acquiring different stages of the production process, from raw materials to distribution, to increase efficiency and control. It has been historically used by industrialists like Rockefeller in the oil industry and is currently applied in healthcare systems to streamline services.
Step-by-step explanation:
Vertical integration is a business growth strategy involving a company expanding its operations into different steps along the production process or stages in the continuum of care. This can include acquiring businesses that provide the raw materials needed for production, those that handle manufacturing, and companies involved in the distribution or retail of the final product. Vertical integration is used by companies to ensure greater control over their supply chain, reduce costs associated with middlemen, and ultimately increase efficiency and competitiveness.
Historically, industrialists like John D. Rockefeller used vertical integration to dominate industries by controlling all aspects of the oil refining process. This approach can also apply to modern healthcare where providers aim to provide integrated services from primary care through to specialist treatments. The concept fosters not only business growth but also streamlines patient care by unifying various healthcare services.