The business of medicine once again finds itself in the throes of rapidly escalating costs, concerns about quality of care, and demands for efficiency while simultaneously enhancing quality. Considerable effort has already been spent in trying to improve costs, quality, and patient satisfaction. The apparent failure to do so may be the result of a fundamental misunderstanding of the salient features of clinical practice and the misapplication of quality improvement techniques. This article explores some of the significant issues and offers potential new directions.