After a brief analysis of the financial and health care motives that h
ave led to the current boom in disease management (DM) programs, this
paper discusses the pragmatic realities of a particular DM program for
treating asthma. A model of the institutional structures necessary fo
r DM to work is presented, emphasizing a process of continuous quality
improvement in technical, clinical, and managerial processes. Signifi
cant differences between the conventions of controlled clinical trials
and the realities of actual patient care may lead to unrealistic expe
ctations about DM, making sound managerial practices and effective com
munication even more important. A ''data warehouse'' can help health c
are systems master the intricacies of programwide data collection and
analysis, making possible sound decisions regarding treatment regimens
and changes in physician and patient behavior. This paper concludes w
ith a discussion of how the Prudential Health Care DM program for asth
ma makes use of the practices and systems discussed above.