Service Line Grouping

What is service line grouping?

Service line grouping is the process of sorting patients who share the same characteristics or disease into cohorts for analysis purposes. These service lines often take into consideration diagnosis-related groups (DRGs), service location, and ICD-10 procedure codes. Other factors that can help define a service line include social determinants of health, which are health factors related to the individual’s environment or socioeconomic status.

Service line grouping is a way to define and coordinate the financial, operational, and strategic attributes of a specific line of business. As such, analyzing service lines allows hospitals to understand each line’s contribution to the facility’s overall success. In addition to seeing how the service line compares to others, service line grouping also provides insights into how the service line can be improved.

How can service line grouping improve healthcare?

With the increased emphasis on value-based care, it is all the more important for hospitals and clinics to focus on providing high-quality care, even if it means they service fewer specialties. Through service line grouping, these businesses can see where their strengths lie, and where they should focus their attention.

Other benefits of service line grouping include improving the patient experience, reducing system outmigration, controlling the cost of care, and enhancing organizational accountability.