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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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Fetter et al. (1986) studied this question.
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