The Icelandic Medical Association appointed a committee in 1993 with the task of recommending how to introduce the concept of Total Quality Management into the Icelandic healthcare system. The first task was to conduct a mail survey of the current status of quality assurance. Heads of departments at the five major hospitals in Iceland were contacted as well as the chairmen of all the specialist societies. The response rate was only 37%, but compensated by two ameliorating facts; responses were obtained from most of the major departments, and there was a considerable overlap between hospital departments and specialty societies as well as between subspecialty societies. The results indicate that quality assurance is an ingrained part of Icelandic hospitals, mostly in the form of standards and retrospective audits, not prospective actions. Methods used are further detailed. Outside hospitals, the Icelandic Society of Family Physicians stands out amongst the specialty societies represented, by having organized and carried out several projects in quality assurance. It is recommended that more emphasis shall be put on prospective methods, the setting of practice guidelines, outcome studies and research in quality assurance. The lack of quality assurance in specialty practice outside hospitals needs to be addressed with vigour.