The implementation and advantages of product-line management in cancer programs

During the next decade, hospitals will continue to experience changes in case mix, technology, and reimbursement. The incidence of cancer will increase, and cancer patients are projected to become a larger portion of the overall treatment population served by hospitals. Because the term "cancer" refers to a complex group of diseases treated by many specialties, it is imperative that hospital administrators familiarize themselves with this product-line and address the clinical, financial, and programmatic issues inherent in this large, difficult-to-manage patient population. In contrast to traditional departmental organizations where a number of services, such as nursing and respiratory therapy, are used independently to treat a specific patient, product-line management examines the appropriateness and utilization of all services used to treat a specific group of patients. This organizational approach to cancer treatment has been successful in improving the quality of care, promoting physician bonding, increasing market share, and maximizing resource utilization. This special report focuses on the implementation and advantages of product-line management in cancer care, and will discuss the organizational issues, the process of developing a product-line, and major problems.