Product-line management: systems and strategies

Area of Science:

• Healthcare Management
• Organizational Behavior in Healthcare
• Clinical Service Delivery

Background:

• Increasing competition in healthcare delivery necessitates new management strategies.
• Hospitals face pressure on pricing and internal control, prompting organizational change.
• Product-line management emerges as a response to these evolving market dynamics.

Purpose of the Study:

• To define product-line management in the healthcare context.
• To explore organizational issues and management tools associated with product-line management.
• To provide a practical example and implementation plan for healthcare organizations.

Main Methods:

• Conceptual definition of product-line management.
• Delineation of organizational influences and necessary management tools.
• Case study presentation of The Johns Hopkins Hospital's experience.
• Development of an action plan for implementation.

Main Results:

• Product-line management is defined as structuring healthcare services around case types or clinical services.
• Key organizational issues and essential management tools for product-line managers are identified.
• The Johns Hopkins Hospital provides a real-world example of product-line management implementation.
• A strategic action plan is outlined for hospitals adopting this philosophy.

Conclusions:

• Product-line management offers a structured approach to healthcare service delivery in a competitive environment.
• Understanding organizational impacts and utilizing appropriate management tools are crucial for successful implementation.
• The presented case study and action plan offer valuable insights for hospital managers.