Bitter pill.

Business North CarolinaVol. 16 Nbr. 9, September 1996

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Duke Hospital - Cover Story

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Bitter pill.

Rather than succumb to the ravages of managed care, Duke med center took its medicine and got down to business.

Three years ago, Mark Rogers left Johns Hopkins University to run Duke Hospital. He'd seen managed health care cut a swath through Maryland, so he was surprised to hear Duke was planning a huge addition to its inpatient tower. As an M.D. with an M.B.A., he knew what managed care meant, and it didn't mean flush times for hospitals. Yet there was Duke, expanding, putting in more beds - "for all the patients who would come," he says facetiously.

It was a sign of arrogance - and ignorance. "Clearly, at the time, the institution thought its quality would protect it from managed care," Rogers says. After all, this was the medical jewel of the Southeast. The place Saudi Arabian royalty came for surgery. The fifth-ranked hospital in the country. Certainly it could stay above the fray. "There was a tremendous insularity here," admits Ralph Snyderman, chancellor for Duke University Medical Center, which includes the nonprofit teaching hospital and Duke's medical sch...

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