Abstract Numerous product quality scandals are caused by low-quality inputs. When input is not perfectly observed downstream firms, upstream firms often have moral hazard problems. If vertical integration does directly eliminate the problems, still improve quality? so, under which conditions? We find that given precision of monitoring technology used when level public very high or low, no incen...

Vertical integration strategy has a positive influence on increasing hospital revenues, while horizontal integration strategy has a negative influence on increasing hospital expenses. horizontal integration and vertical integration strategies have a positive influence on hospital profit. Overall, the study shows that a horizontal integration strategy is more profitable than a clinical integrati...