How does one maintain an ethical practice while facing the requirements and
limits of a health care system that is dominated by managed care? Psycholo
gists are increasingly raising such questions about ethical issues when wor
king in or contracting with managed care organizations. The authors review
the process involved in ethical decision making and problem solving and foc
us on 4 areas in which ethical dilemmas most commonly arise in a managed ca
re context: informed consent, confidentiality, abandonment, and utilization
management-utilization review. The need for sustained and organized advoca
cy efforts to ensure patient access to quality health care is discussed as
is the impact of managed care's competitive marketplace on professional rel
ationships. Hypothetical examples of typical dilemmas psychologists face in
the current practice environment are provided to illustrate systematic eth
ical decision making.