A survival strategy for an academic psychiatry department in a managed care environment

The changing economics of medical practice have had a profound effect on th e educational, research, and service missions of academic departments of ps ychiatry across the country. The authors describe the development of a mana ged behavioral health care organization in their parent academic health si- stem as a survival strategy for allowing their department to function in a managed care environment. They present a series of lessons learned in this effort to adapt to a highly, volatile managed behavioral health care market : know how you fit into your market as well as your institution. form coope rative alliances within and outside of your institution, pro,,ide incentive s to manage risk, focus on core competencies, innovate in your areas of str ength, and collect data.