Abstract
HMO staff model mental health programs have particular expertise in providing these services in an integrated fashion within the context of a total medical care system. “Carve-out” approaches to managed mental health care risk losing the added value found in primary care based integrated mental health services. Employers as purchasers of care are seeking demonstrated value in services, and the rise of specialty mental health managed care firms is bringing the efficiencies of managed mental health care familiar to HMO's to a broader audience. Faced with employer concerns, and this new competitive environment, many HMO's are examining their mental health services to determine how these services may respond to the needs being expressed by employers today for new program options. The Community Health Plan's (CHP) experience is presented to illustrates one approach HMO's are taking in today's competitive health care environment.