Patient care services are provided to individual patients in response to their health needs produced by illnesses or injuries. The services are often addressed to very serious conditions, and also they constitute the most expensive component of health care services. Therefore, the importance of quality is emphasized, but there are many indications that patient care quality is far from a satisfactory state in most of the countries. Based upon this observation, it is attempted to examine obstacles and approaches to quality improvement in patient care services. In doing so, following Taguchi's(1986) definition of product quality, quality of patient care services is conceived of as better when the less is the sociental loss attributalbe to variability of intended function and harmful side effects they emhibit after being delivered. Some distinguishing features of medical care sector pose difficulties in implementing effective quality improvement programs in patient care services. Nevertheless, newly proposed method of quality management, based on industrial quality management approach, seems to have a great deal of potential to effectively cope with such difficulties. This method, unlike the traditional approach to quality assurance, focuses on total organisational processes, not individuals, as the obproach to quality assurance, focuses on total organizational processes, not individuals, as the objects of quality improvement; variation, not comparison with standards, in quality measurement; and continuous improvement, not removing only bad quality care, as an ideal. Prerequisite to a successful use of any quality mangement method is motivating providers to improve quality. Conceivable approaches for such motivation are self-regulation, external controls and promotion of competition. Since these approaches are not mutually exclusive, they may be employed in an appropriate combination. In Korea, medical care providers are now functioning under the circumstances where they have little reason for making efforts to improve quality of their services. Once these circumstantial conditions are changed to exert pressures on providers to improve quality, the use of adequate quality management method becomes an issue. In this connection, much attention shoould be directed to the newly proposed method described above. In all these efforts for improving quality of patient care services, health insurance would be able to play a pivotal role. Poviders of medical care, buth indiciduals and organizations, are usually very responsive to the measures that affect their financing, and thus health insurance can be a strong instrument for motivationg providers to improve quality. Also, the insurance continuously acquires data on patient care, which could be processed to produce information required to effective quality control.