Service Line Execution 2.0 : Advanced Strategies for Progressive Hospitals Book

Acknowledgements vii

About the author viii

Introduction ix

Chapter 1 Service line management: Now more than ever 1

The resurgence of service lines 1

Universal coverage or consumer-driven care 3

SLM provides market flexibility 4

Responding to market changes 5

Dependency on core service lines signifies vulnerability 7

Chapter 2 The accepted rules for service line success 13

Basic service line execution: The ground rules 13

Define service lines in a quantifiable fashion 16

Determine how to assess success 17

Narrow the number of lines down to a manageable and marketable group 19

Establish the optimal organizational design for service lines 20

Evaluate market position by service line 22

Develop business plans for each service line that sync with the strategic plan 23

Compete strategically at the micromarket level (customer or key stakeholder) 25

Update the model periodically to reflect market changes 26

Chapter 3 Defining services lines in the hospital setting 29

Why definitions are so crucial 29

Hybrid or second-stage service lines 30

The role of data in the process 32

Drill down on the data 37

Conclusion 40

Chapter 4 Why metrics matter 41

Defining the metrics that equate to success 41

Applying a mix of both: Quantitative measures 42

Qualitative measures 44

Distilling the number down to a palatable one 50

Conclusion: It's all about focus 51

Chapter 5 Identify the core service lines 53

Getting to the core 53

The Pareto principle applied to hospital strategy 55

The shifting base of the traditional 'core four' service lines 57

Using portfolio analysis in the narrowing phase 59

Communicating the need forprioritization 61

Chapter 6 Organizing for profitability and customer/patient proximity 63

Managerial structures that work best 63

Team structures and organizationwide management 64

Description and characteristics of optimal service line managers 66

Clinical design with adjunct committee structure 70

Making it work in a multihospital system 70

Chapter 7 Assessing perception and market position by service line 73

The strategic business unit mind-set and the relevance to the new competitors 73

Southwest case study 75

Service line structure helps thwart competition 77

Market reconnaissance on a focused basis and the need for preemptive strategy 78

Service line managers and the role of market intelligence 79

How to gather intelligence on competitors 80

Example of creative positioning tactics 82

Conclusion 84

Chapter 8 The critical need for disciplined planning 87

The business plan provides direction, accountability 88

Integrating service line plans into the strategic plan 89

Basic elements of the strategic plan 90

Basic elements of a service line business plan 92

Market assumptions 93

Accountability 101

Conclusion 102

Chapter 9 Seizing market share from the competition 105

The role and relevance of new competitors 105

The value of marketing 106

The crucial need for effective market research 108

The increasing savvy and sophistication of patients 112

Competition: When to compete, and when to collaborate 114

Promotion and positioning 115

Innovative market maneuvers 117

Conclusion 119

Chapter 10 Refreshing the service line portfolio 121

Auditing the existing structure 121

Hardwiring the process for new services and existing lines 123

Downsizing the organization's portfolio services 125

Delayed elimination of a service line: A case study 129

Conclusion 131

Chapter 11 Thriving on challenge and change 133

The need for a new managerial mind-set 133

Leading at the top with energy and ideas 135

Pushing the envelope with a stethoscope 136

Forays on the frontier 138

Chapter 12 Service line management 2.0 and beyond 141

The future of service line management 142

The pricing paradox 146

On market research 147

Case Study: The CEO as champion and the need for clinical integration 153