Diagnosis related groups: product line management within hospitals.

R. B. Fetter, J. L. Freeman

Research output: Contribution to journalArticlepeer-review

148 Scopus citations


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.

Original languageEnglish (US)
Pages (from-to)41-54
Number of pages14
JournalAcademy of management review. Academy of Management
Issue number1
StatePublished - Jan 1986
Externally publishedYes

ASJC Scopus subject areas

  • General Business, Management and Accounting
  • Strategy and Management
  • Management of Technology and Innovation


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