The present trend in healthcare delivery is away from classic fee-for-
service practices toward providing tightly controlled ''products'' in
the form of Health Maintenance Organizations (HMO's). To thrive in thi
s changing marketplace, wound clinic practitioners must understand the
background of managed care and its terms, and be familiar with the co
ncepts of capitation and incentives. Part of managed care's impact upo
n the specialty of wound care is that practitioners must define outcom
es, healing rates and standards of care. Patient referral will depend
on the cost effective delivery of care from all specialists in additio
n to the primary care physician. To meet these needs the authors creat
ed a hospital based wound care clinic with multiple interrelated areas
of influence and have gathered statistical data. Managed care is here
to stay and wound care practitioners must learn how to prepare for it
and deal with it effectively.