ABSTRACT
Managing mental health treatment for a chronically mentally ill population requires a different strategy from that for a general population. While commercial HMOs and managed mental health care providers seek to enroll the healthiest patients and steer them away from long term therapy, a managed care program for the seriously and persistently mentally ill must focus its cost saving efforts on supporting independent living. This objective is achieved by (1) helping the patient maintain and/or strengthen their social networks, (2) arranging an adequate living environment, (3) supporting medication compliance, and (4) monitoring substance use. Case management strategies are recommended.