Health care reform is a potential threat to the academic missions of m
edical schools and academic health centers. But managed care, the sour
ce of much of their concern, may also represent a way for medical scho
ols to improve their future academic outcomes. Harvard Medical School
and the Harvard Community Health Plan, a large health maintenance orga
nization (HMO) in greater Boston, recently formed the first medical sc
hool department to be based in a freestanding HMO. This arrangement is
an example of a model that replicates, in a managed care organization
, the long-standing and highly successful teaching hospital academic s
tructure in academic medical centers. The authors describe this model
in detail, show how the Harvard collaboration works, and explain the b
enefits each institution saw in creating a joint entity, the rationale
for making that new entity an academic department, and the implicatio
ns for other academic health centers. They conclude that the Harvard e
xperience shows that alliances between medical schools and large HMOs
can create vibrant practice settings for teaching and research in acad
emic areas (such as prevention and primary care medicine) that have be
en relatively neglected in recent times, and that the ''teaching HMO''
may have the potential to transform academic medicine in the next cen
tury just as the teaching hospital transformed it in this century.