The mission, indeed the very existence, of the traditional academic he
alth center is under siege. Changes in the financing and delivery of:
health care threaten the clinical revenue used to subsidize the tripar
tite mission of education, research, and patient care. Market practice
s, driven by the growth of managed care, will intensify the impact of
declining revenue to threaten the actual patient base necessary to sus
tain these endeavors. The survival of academic health centers depends
on their ability to change. This change will not be easy, and the size
of the collective academic medical establishment will decrease. Succe
ssful enterprises will be those that go beyond incremental, reactive a
djustments. Nothing short of organizational redesign, creation of stra
tegic partnerships, and adopting a cybernetic model of continuous meas
urement, improvement and adaptability will suffice. Using the elements
of a strategic planning exercise, this paper reviews the background i
ssues that have produced the current predicament and explores the stre
ngths and weaknesses inherent in academic institutions. Elements of an
''idealized'' academic. health center are postulated and, finally, sp
ecific strategies that might be considered in creating a relevant and
secure future are proposed.