Presented here is an exploration of the motivations involved in the de
velopment and application of managed mental health care to the private
practice of outpatient psychotherapy. The interaction of management p
olicy and psychotherapy is conceptualized in a dynamic model designed
to provide insights into effective care policies. The model is describ
ed first, then the development of managed care, which appears defensiv
e and is becoming symptomatic to the point of needing significant chan
ge. It is suggested that management policies providing choices of ther
apists and therapies will be the most effective in addressing ethical
fiscal, and psychological concerns of funders, consumers, and provider
s.