Managed mental health care in the public sector

Due to strong market forces and payor concerns, first in the private and now in the public sector, the mental health field is changing. The survivors and leaders will be the innovators and risk takers. They must have the ability to look critically at themselves and make needed changes. This new environment creates great opportunity to provide better mental health care. Capitated mental health programs for Medicaid beneficiaries are developing in various forms across the country, and mental health providers, both private and public, need to be aware of those developments. Such programs have great promise for community mental health centers. Medicaid is generally a major funding source for the community mental health system, and public funds should be used to the best extent possible. Managed care has great promise for cost containment and can provide financial stability for community mental health centers. The most important promise of managed care, however, is improving access to and quality of mental health services for the Medicaid population.