Hoag Memorial Hospital. The product-line management team.
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PLM will have a significant impact on an organization's mission, management philosophy, marketing plan, and most definitely, day-to-day operations. PLM offers an alternative to traditional management approaches for the medical record department and the health care industry as a whole. The medical record professional should understand PLM both as a hospital wide structure and as an internal structure used to maximize departmental productivity and use of resources.
For the past few years, The Washington Hospital Center has had a prepaid obstetric clinic program for uninsured patients. Although the program was satisfactory, some deficiencies had developed. For example, research had shown a high correlation between a mother's lack of prenatal care and high healthcare expenditures. By implementing a new program that included financial incentives for various prenatal care programs, the hospital was able to financially break even with the old program, have a more predictable financial performance evaluation, and have healthier mothers and babies.
The hospital is viewed as a human service enterprise whose primary function is the provision of diagnostic and therapeutic medical services. Its products are the specific sets of services provided to individual patients. A system for defining hospital products based on the characteristics of patients receiving similar sets of services has been developed and is referred to as Diagnosis Related Groups (DRGs). The system is described, and its implications for improved hospital management are discussed.
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