If hospitals are to succeed in their efforts in cost control, they must segregate the influence of efficiency and effectiveness and integrate the medical staff into the management structure. One management model that facilitates such integration is Clinical Matrix Management. Using such a model, the distinct responsibilities in patient care can be segregated between the administration and the medical staff and appropriate accountability and responsibility allocated. Without the explicit integration of the medical staff into the organizational structure, the attempt to control patient care costs is unlikely to succeed.