Models for virtual healthcare systems.

Historically, the healthcare industry has focused primarily on issues of quality. Today, cost is the primary concern of the public, politicians and healthcare providers. Healthcare providers are responding by questioning old assumptions about their roles in the industry. They are seeking new growth opportunities. Hospitals, for example, are taking on responsibilities once assumed by insurers and physicians. Healthcare providers also are developing strategies to consolidate resources, implement integrated information systems, and, in some cases, decentralize operations. This article uses examples from the experiences of the Baylor University Medical Center in Dallas to illustrate how healthcare systems are responding to the challenges of managed care by cutting costs while improving the quality of services.