There are 10 ways healthcare managers can cope with a difficult healthcare environment. The 10 ways are in three groups: strategic planning, operations control, and operations effectiveness. This article has been used to train healthcare professionals to deal with managed care.

The healthcare provider is on the horns of a dilemma. The healthcare industry remains in a "shakeout" with providers (among them physicians, physician groups, and hospitals) in the middle between patient-customers and managed care providers. For providers, understanding and responding to the needs of HMO's and other managed care organizations are vital to survival.

Many physicians are forced into unnatural management challenges. The article describes how a medical group director can cope with the current healthcare market realities. Several tools are described for measuring and rewarding performance among doctors and other professionals.

Cost effective healthcare service delivered smartly is a necessity. Many service industries are averse to adapting industrial tools to design their processes and measure their performance. The article describes such a tool for a healthcare setting. The same approach has also been applied in financial services, utilities, entertainment, and professional settings.

People are the key to the success of healthcare organizations. Because healthcare organizations now have to compete more aggressively, innovation in recognition and rewards is increasingly important for future success. The article emphasizes not only rewarding existing skills but also developing new ones for employee satisfaction and improved competitiveness.