Two questions are addressed: (a) Does research support the hypothesis that psychotherapy exerts a favorable influence on physical health? (6) Can psychotherapy be employed to change physical health on a cost-effective basis? Research with overutilizers of medical services, surgical patients, and other groups is discussed in terms of methodological adequacy, and problems faced by researchers in these areas are explored. The effectiveness and economic efficiency of psychotherapeutic preparation for surgery are strongly supported. Studies with over-utilizers are promising, but randomized experiments are needed. Implications for inclusion of coverage of psychotherapy under national health insurance are discussed. This article is based on a manuscript submitted 'to the Critical Review Series of the Florida State University Department of Psychology. Appreciation is expressed to Lee Sechrest and Richard L. Hagen, who assisted in revision of an earlier version of this article. Requests for reprints should be sent to Mary Ellen Olbrisch, who is now at