Managed mental health care cost-containment practices of risk-benefit analysis, provider usage, manipulation of supply and demand, gate keeping, medical necessity, and formulation have adversely affected quality of care. Improved mental health services are dependent upon redefining mental health problems and understanding inequities created by medicalization as means to limit access to services. This dilemma can be addressed by development of mental health policy, public education, and political advocacy. An immediate role for professional psychology is found in the creation of a research agenda that documents empirically supported interventions for specific mental health problems, mechanisms of effective and acceptable service-delivery, and identification of providers with demonstrated clinical skills, including cultural competencies.