Market forces are driving the rapid growth of new types of integrated
care systems. These systems often bring together organizations which h
ave historically been competitive profit centers, and impose on them n
ew requirements to function as collaborative cost centers. Sophisticat
ed buyers expect cost control along with documentation of improved out
comes and decreased variation. Traditional management methods are simp
ly inadequate to meet the radically new requirements of these new syst
ems. This paper describes the basic elements of a transformational man
agement method, and cites examples from the experience of the intensel
y competitive Minneapoiis/St. Paul marketplace.