Hospitals consolidating product lines
From 1994 to 1997, health coverage premiums increased between 2% and 4% annually.
The four women, who meet regularly to discuss service line development, shared highlights of their last meeting together in Atlanta, including challenges and best practices in cardiovascular service line integration.The transformation toward a service-line based structure involves moving from a vertical structure of healthcare delivery (based on sites or locations of care) to a horizontal one (based on services lines). Molden, it is through horizontals that strategy and metrics are set and where collaboration takes place, while the role of the verticals is to execute the strategy. Molden called the integration of Piedmont's cardiovascular service line "probably the most disruptive innovation our organization has ever experienced." She explained that as the process moves forward to other service lines, many employees may have very different jobs than they do today. Younger explained that bringing together vertical providers in a horizontal service line can result in "turf issues" if steps aren't taken to reduce competition and encourage collaboration.To be successful, physicians must be given leadership roles and allowed to drive the process, she said. Bent noted that the transformation has resulted in a somewhat duplicative management structure at Allina Health (with service line managers and department managers overlapping duties in some cases).Primary strategic emphasis is through an application of expansion and maintenance of scope adaptive strategies.Secondary efforts include a limited application of market entry and competitive strategies.