Managed care in mental health has changed practice patterns and utiliz
ation with largely unknown consequences for ethnic minority population
s. Managed care promotes oversight and continuity, but may inadvertent
ly create barriers to access beyond those already apparent under fee-f
or-service. Capitation rewards efficiency and flexibility but may prom
ote incentives that discourage minority inclusion. As mental health sy
stem reform proceeds, the need for culturally informed programs, pract
ices, and practitioners has not diminished. The challenge is to bring
cultural expertise to bear within new organizational arrangements and
financing schemes.