Much of the dispute over the value of long-term psychotherapy in a managed-care system has focused on issues of time and money. This paper reviews the arguments put forth by defenders of psychotherapy and by managed-care organizations, and then moves to reconceptualize the issue through the perspective of narrative literary theory.What do they do? They dialogue.-Freud! Faster than almost anyone expected, managed care has become the de facto national health policy.-George Anders2Why are managed-care companies so reluctant to deal with psychotherapy? As the implications of health-care reform sweep across America, why have insurance plans in every state offered only minimal coverage for mental illness, refused to admit many psychiatrists and psychologists into their treatment "networks," and severely restricted access to outpatient psychotherapy? And why do many psychotherapists, subsequently, harbor deepseated reservations about managed care? In an age where the business model is supplanting the out-of-control medical model, these developments do not seem to make sense for one simple reason: mental illness is big business. In a system presumably fueled by demand and, if enough demand, supply, there is an unending supply of demand. In any given year nearly 30 percent of the (non-institutionalized) American population between the ages of 15 and 54 will meet the criteria for a mental illness. 3 Of these, only 15 percent will seek treatment with a health-care professional.Over the course of a lifetime it has been estimated that 50 percent of the population will suffer from a psychiatric disorder as defined in the Diagnosfic and Statistical Manual, of which fewer than 40 percent will receive any type of treatment. 4 Moreover, recent surveys have suggested that up to 97