A few of the opportunities and difficulties of educating pediatric res
idents in a particular community-based setting, the managed care organ
ization, are discussed in this article. Some of these organizations ha
ve deliberately recruited corporate employees with young families, off
ering relatively complete coverage. Quality problems remain, however.
Children may benefit, because managed care arrangements may reduce ove
rdiagnosis and overtreatment, but children may also be deprived, parti
cularly in Medicaid managed care programs, of needed, appropriate care
. Pediatric faculties must be confident about the quality of care, the
quality of teaching, and the opportunity for residents to develop int
erpersonal skills before residents are placed in managed care settings
. First, however, important, broader aspects of contemporary pediatric
education are discussed. These essentials of contemporary pediatric e
ducation apply in any setting, community based or not, and not only to
physicians in training, but to those who are delivering ongoing care
as well. A case study illustrates the impact of technologic advances o
n medical diagnosis and management. Such advances may lead to the chan
ce for better outcomes but also to confusion, including misperceptions
about disease prevalence, the natural history of disease, and therape
utic effectiveness. To meet patient needs and to provide a medically e
ducated physician, the understanding of biology and disease that grows
out of scientific advances must be balanced with the illness-related
functions of the physician. Two approaches to this goal are suggested:
(1) the epidemiologic and demographic anatomy of the health of popula
tions and the socioeconomic kinetics of our society and its diverse va
lue systems relevant to health care should be deliberately structured
into all phases of medical education; and (2) the sites of the educati
onal process should be diversified so that residents are placed, perha
ps as much as half the time, in those settings in which most patients
interact with physicians.