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In brief, Obstetrics, like many other medical specialties, is experiencing the convergence of a number of diverse medical, social and economic trends. As a result there is increasingly intense turmoil in how these services are clinically delivered and in how they are managed--with a profound shift from basically inpatient, institutional care to outpatient care. Hospital executives must be alert to these changes if they expect their clinics and inpatient facilities to remain competitive and to deliver the best possible care under a rapidly changing set of expectations. If executives fail to recognize these pressures and thereby fail to create timely strategic reactions, their organizations may subsequently experience poor long run performance. The issue in obstetrics is not merely one of determining how best to manage obstetrics-related clinics, programs or departments; although this is a significant hospital management problem, it is important to recognize the changes and prevalent patterns, and to begin devising responsive management strategies. See strategies below.