This book is a testament to the fact that managed care is beginning to affect the practice of professional psychologists, and more important, that this trend is likely to continue. To practice effectively within such an environment, psychologists need to understand the forces promoting the growth of managed care and the ways they stand to be affected by and potentially to benefit from this major shift in the way mental health and substance abuse treatment services will be delivered in the future (Bloom, 1990). Although professional psychologists have not been primarily responsible for creating the cost trends that have stimulated managed care in mental health, they, like all other professionals, will be affected. It will not suffice to proclaim professional innocence, although professional sophistication on the issues may have some positive effects.This chapter has four major purposes: (a) to review national trends in general health care costs and in health service delivery systems reacting to these cost trends; (b) to review comparable trends in mental health, drug, and alcohol treatment costs and service delivery systems that echo those in the general health system; (c) to make the case that managed care in the mental health industry arises as a marketplace response to concerns for service, cost, quality, and accessibility on the part of employers and insurers; and (d) to describe a general framework for understanding the structure of managed mental health care, while pointing to opportunities for psychologists who have cost-effective services to offer in a cost-and quality-competitive market.
National Health Care CostsTrends in mental health can be viewed as a n echo of trends occurring in the broader field of general health. Of these, the rising costs of treatment, even after accounting for general inflation, have been the dominant concern among