As managed care and capitation methods of payment more common to hospi
tals. a strategy to improve quality and reduce costs is introduced in
response introduced in response to these new pressures. Nursing leader
s must take the initiative and respond to these changes by reducing th
e variations in patient care. The author describes seven initiatives u
ndertaken by the nursing leaders of The St. Joseph Healthcare System i
n Albuquerque, New Mexico, during a 3-year period. The success of thes
e initiatives and their universal application is discussed.