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The disease management approach to improving health care, at the systems as well as the hospital level, has proved to be very powerful, producing unprecedented results in reducing costs while improving quality of care and patient satisfaction. The Boston Consulting Group (BCG), working with a variety of leading managed care providers and pharmaceutical clients, has pioneered the development and dissemination of the disease management concept. Describes the disease management approach at the system level and shows results achieved so far. Shows also how the application of the logic of disease management within the boundaries of a single hospital leads to fundamental changes and quantum‐leap results. In outlining the key success factors for a change process following the disease management approach, focusing on the patient with a disease, shows how the approach differs from traditional hospital re‐engineering.

The disease management approach to improving health care, at the system as well as the hospital level, has proved to be very powerful, producing unprecedented results in reducing costs while improving quality of care and patient satisfaction. The Boston Consulting Group (BCG), working with a variety of leading managed care providers and pharmaceutical clients, has pioneered the development and dissemination of the disease management concept. Defines the disease management approach and outlines how it differs from the traditional component management approach. Also describes the key elements of disease management, characteristics to look for in a candidate disease, and results achieved so far. Finally, discusses the three strategic roles a health‐care player can take in disease management.