Organized vertically integrated health systems are in a key position t
o play a major role in present health care reform efforts. To demonstr
ate a competitive advantage in the new health care environment, howeve
r, integration efforts must be successful. Based on a national study o
f nine organized delivery systems, this article develops measures of t
hree types of integration that occur in vertically integrated health s
ystems-functional, physician-system, and clinical. These measures can
be used as a ''scorecard'' to assess progress toward achieving integra
tion objectives.