ABSTRACT
Managed Service Restructuring (MSR) is a process that permits managers to afford a service its maximum possible productivity within the overall marketing effort of the organization. MSR may involve a conscious management effort to retain a seemingly unprofitable existing service. The MSR technique is most profitably used when management is unable to identify the stages of a service’s life cycle, or to recognize its place in the organization’s portfolio. The mission statement or business definition must correlate with the reality of how the organization operates. Sheldon S. King of Cedars-Sinai Medical Center of Los Angeles found it beneficial to cooperate with UCLA Medical Center to avoid unnecessary competition, thereby serving the region more appropriately with only services that the centers are best at providing. King also stated that hospitals should go beyond health care and provide services to the community such as access to proper housing, adequate nutrition, and counseling after discharge from the hospital.
