Managed care is reshaping our health care system, although long-term care i
s only beginning to feel its effects. We report on the managed care involve
ment of 492 multilevel, long-term care facilities (MLFs; including skilled
nursing and assisted/independent living) nationally. Organizational structu
re and culture and especially environmental characteristics are associated
with whether facilities have contracts with managed care organizations (MCO
s), plan to have contracts, are only gathering information on MCOs, or inte
nd to do nothing in the near future. Resource dependence theory best explai
ns MCO contracting patterns with MLFs appearing to be responding more to su
rvival than to growth.