Because the Veterans Health Administration (VHA) is the nation's largest health care system and employer and trainer of psychologists, changes in VHA psychology have implications for the rest of the profession. A national survey of 127 VHA psychology leaders (91% response rate) documented that many psychologists now are managed by a psychiatrist, deliver more outpatient services, and do less personality testing. In the context of a 10% reduction in psychology staffing, morale is rated lower than 2 years earlier. Diversified professional roles are associated with higher status of psychology and management support for mental health programs. Psychologists need to understand and respond adaptively to the organizational and economic forces affecting their practice.Motivated by a commitment to making quality health care more patient-centered and cost-efficient (Kizer, Fonseca, & Long, 1997), the Veterans Health Administration (VHA) of the U.S. Department of Veterans Affairs has been undergoing a major reorganization since 1995 that has had major impacts on VHA psychologists and VHA psychology training programs. This report summarizes the results of a national survey of VHA psychology leaders that was conducted in 1999 to assess the effects of this reorganization on VHA psychology. Specifically, the survey asked about changes in the administrative structure within which psychological services are delivered, staffing levels, practice patterns, administrative and training effort, the morale of psychologists, the status of the profession of psychology, and management support for mental health programs.The size and historical importance of the psychology program in VHA make changes in VHA psychology significant for psychol-DALE S. CANNON received his PhD in clinical psychology from the University of Utah in 1970. He is chief, Informatics Section, Mental Health Strategic Health Care Group, Veterans Affairs (VA) Headquarters.