Product-line management: systems and strategies

Over the last two years, the healthcare delivery system has become much more competitive from the perspectives of both price and internal management control. The environment has led many hospital managers to consider product-line management organizational changes. This article defines product-line management as "the organizational structure, management control systems, and delivery strategies for healthcare services structured around case types or major clinical services." The article also delineates the organizational issues influenced by product-line management and the management tools necessary for product-line managers. An actual example of how product-line management can be delivered is presented using The Johns Hopkins Hospital experience. An action plan for implementation is also presented for hospital managers desiring to develop product-line management philosophies in their hospitals.