As reimbursement for psychiatry changes, general hospital psychiatry d
ivisions, specifically consultation-liaison (C-L) services, will take
on increasingly important roles. This article shows how a variety of f
unding mechanisms have applications in different hospital systems. Alt
hough every recommendation does not apply to each hospital, certain im
portant contributions that C-L psychiatry can make, such as updating d
iagnosis-related group codes and enhancing hospital reimbursement for
services appropriately delivered, are reviewed. Specific recommendatio
ns that may be helpful in various hospital systems are offered that, i
ndividually and in the aggregate, should enhance the position, as well
as the financial, research, and clinical base for an effectively mana
ged C-L service.