Historically hospitals have struggled with organizational design and management of services within a single institution. The traditional design has been a bureaucracy with a hierarchical management structure. As individual hospitals develop new business relationships to form health systems, there is a need for innovative solutions that provide the flexibility and responsiveness necessary for successful health care management. One traditional business model, the SBU, or strategic business unit, may serve as a template for the development of product or service lines. The SBU has application for selected portions of a health care organization. The SBU will be discussed as it specifically relates to women's and children's health care services.

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