MANAGED CARE AS A PLATFORM FOR CROSS-SYSTEM INTEGRATION

Following the significant industrialization of private health care, ma naged care strategies for reducing costs are beginning to enter the pu blic sector Privatization of public mental health dollars is already a reality in some states and a growing possibility in many others. Chan ges in the financial management of behavioral health care are a source of concern for providers, advocates, and clients who desire services that are consistent with the core values of an integrated system of ca re. This article reviews the core values of the system of care for chi ldren and families, recent changes in the continuum of care for childr en with severe emotional disorders, and basic principles and strategie s of managed care. It is proposed that system-of-care values and manag ed care principles are not mutually exclusive. In fact, a judicious co mbination of system-of-care values and private sector management strat egies may facilitate cross-system integration of services for children and youth. An example of a private, nonprofit corporation designed to manage public sector dollars across child welfare, juvenile justice, and mental health/alcohol and drug addiction systems is presented.