Managed care has changed the practice of medicine. The choice of healt
h care providers has been narrowed, physicians are being held financia
lly accountable for the number of services they use, and a new emphasi
s is being placed on the cost and quality of the care provided. The tr
ansition to managed care has occurred with little attention to its imp
act on access to health care services or the quality of services provi
ded. There is an absence of information about how children fare in the
se new systems. What little is known indicates that children in manage
d care arrangements are less likely to be able to be seen by pediatric
specialists, and that families and providers are less satisfied under
managed care. The impact of these changes on children's health status
, however, is yet to be determined. For children with special needs, t
he problems of coordination of care, coverage of needed services, and
the choice of the appropriate pediatric subspecialists, many of which
existed in traditional fee-for-service systems, persist under managed
care. In spite of all of the negative anecdotes about managed health c
are, managed care's focus on its population of enrollees and its heigh
tened sense of a need for health care accountability bring exciting ne
w opportunities to measure and improve the health care children receiv
e. A new emphasis is being placed on practicing evidence-based medicin
e; the focus is on closing the gap between what is known (effective, e
vidence-based care) and what is done (current practice). Improved heal
th outcomes and reduced health care costs have been documented in demo
nstration projects in neonatal intensive care units and in pediatric o
ffices. Applying the principles of these learning collaboratives and e
mploying the tools of continuous quality improvement in health care ar
e urgent challenges that deserve to be met. Health plans, physicians,
health care purchasers, regulators, families, and their children must
work together to assure that children receive the highest-quality care
possible-care that is technically excellent and medically appropriate
, and that improves the health of our children.