EAST LANSING, Mich.-Michigan State University and a subsidiary of Blue Cross and Blue Shield of Michigan are teaming up to create the Managed Care Institute, which will train practitioners in utilization review, practice guidelines, outcomes research and other tools of prepaid healthcare. The institute, which will be on the MSU campus, will teach practicing physicians, nurses, nurse practitioners, MSU medical students, resident physicians and nursing students. It also will develop managed-care curricula for the MSU colleges of human medicine, nursing and osteopathic medicine; conduct research; and hold a national conference on managed care later this year or in early 1996. Blue Care Network-Health Central, a 65,000-enrollee HMO serving mid-Michigan, will provide technical support and funding, including a $550,000 grant in the first year. The university said the institute is a perfect fit because more than half its medical and nursing graduates enter primary care. Also, faculty will increase participation in managed care under a new contract between MSU's faculty group practice and the HMO.