In today’s increasingly vertically, horizontally, and virtually integrated healthcare landscape, a service line focus on core diseases and conditions can be an effective strategy for managing patient care and boosting market share.
But while clinical service lines—from cardiology to orthopedics to neurosciences—have gained considerable traction elsewhere in healthcare, they are much less common in children’s hospitals. This is unfortunate because, like other health systems, children’s hospitals are often focused on providing care outside the hospital itself.
A Case Study
Facing heightened competition, Dayton Children’s Hospital, a 155-bed hospital in Dayton, Ohio, had expanded its ambulatory presence, investing in services across the care continuum. But the organization found that broader offerings were not enough to drive growth. With separate management structures for inpatient and ambulatory services, not to mention many independent physicians, opportunities could be missed.
To achieve the full value of ambulatory-focused expansion, Dayton Children’s leadership sought to reorganize the management structure to provide planning, operational, and clinical oversight across the continuum of care at the service line level.
Working with Sg2—a healthcare strategy, analytics and consulting agency—the organization took a data-driven approach, beginning with a detailed assessment of its market, services, and opportunities for growth. This led to the creation of a service line structure that is physician-led and utilizes program directors for each key service. The new structure is already showing signs of improving synergies, reducing costs, and enhancing quality and consistency of ambulatory care.
Free Advice!
Here are three tips for developing service lines:
- Understand your market and your organization. As Dayton Children’s did, ground your understanding in data and analytics, but also incorporate more qualitative assessments (e.g., current levels of service integration).
- Ensure the new structure spans the care continuum, eliminating silos. Build in accountability for clinical, financial, and strategic goals.
- Identify a strong physician champion to lead change. A committed and persuasive physician leader is key to success.
In the September/October 2016 issue of SHSMD’s Spectrum magazine, Lisa Henderson, director of business development at Dayton Children’s, and Ryan Inlow, associate vice president of strategic analytics at SG2, share insights for utilizing a service line strategy to boost market share. To learn more, read Increasing Ambulatory Care Volume with a Service Line Development Strategy.
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