Managed care provides the potential for a more balanced system in the postinstitutional era of mental health care.by David Mechanic PROLOGUE: As managed care matures in the general health care market, and the problems of accountability and patients' rights continue to elude policymakers, it is not surprising that the mental health community casts a reluctant eye on managed care while at the same time submitting to it. This paper by David Mechanic examines the issues-such as deinstitutionalization, parity in benefits, and integration with general health care-that make the mental health arena a particularly challenging but very attractive environment for care management. Mechanic reminds us that managed care is first and foremost a business strategy and that its implementation in the mental health arena requires a social contract between purchasers, mental health professionals, advocates, and the government to ensure that patients receive appropriate care. Ultimately, says Mechanic, the effectiveness of managed behavioral health care will be determined not just by the accountability of managed care organizations but also by the willingness of all players in the system to commit to change and be responsible for it.