The industry chain integration is a key topic of industry chain study. The health service industry chain is comprised of health insurance, medical service and health management. Based on a certain industrial linkage raltions and vertical transactional relations, it has special ring-type industrial linkage structure, and its vertical integration is of great significance to the reform of medical system and development of health service industry. This paper employs neoinstitutional economics and information economics to theoretically analyze the three typical industry integration models, which are respectively dominated by insurance companies, hospitals and health mahagement companies, and finally we put forward policy suggestions on medicl system reform and health induxtry.