The purpose of this review of current levels of collaboration between Royal Melbourne Hospital (RMH) and General Medical Practitioners (GPs) is to identify strategic options for collaborative endeavours to improve the continuity of patient care. The review was undertaken in response to initiatives by the Divisions of General Practice yet also seeks to respond to the imperatives for the hospital system which arise from governmental initiatives, particularly the formation of hospital networks. The paper reviews the Australian literature and recent initiatives which seek to improve collaboration between hospitals and GPs. The goals and strategies identified in the review of the literature are then used as a basis to assess current hospital performance and to identify joint strategies to be implemented in the next two years.