Managed care has transformed the health care environment that residents enc
ounter oil completion of their training. Unfortunately, residency education
has riot kept pace with changes in the field, leaving graduates inadequate
ly prepared. The authors identify necessary changes in the residency traini
ng tasks of instilling values, imparting required knowledge, building core
skills, selecting appropriate training sites, and offering a diversity of i
nstructors and supervisors. They also discuss the obstacles that have imped
ed the evolution of academic clinical sen ices and. clinical training. Thc!
suggest strategies of change that may lead to more relevant educational pr
ograms that provide residents with a balanced perspective on the strengths
and weaknesses of both traditional and contemporary approaches to deliverin
g care.