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Negotiations with outside agencies have become a new endeavor for many mental health managers. However, a significant barrier to managers learning the theory and skills of bargaining arises in the values possessed by mental health professionals, which encourage them to see negotiations as exploitative and consequently unethical and unhealthy. This paper reports on an effort to study and work through these value issues within the negotiating context.

The State of Colorado has introduced performance contracting into its relationships with community mental health centers. The nature of the contract and its implementation are described. Particular emphasis is placed on the implications of the contract for program evaluation. Essentially, the contract provides a clearer focus and richer data while complicating the evaluator's tasks.

The Colorado Division of Mental Health implemented a quality assurance program in all of its mental health facilities. The system was designed to help managers know how they were doing on operational issues. The program was simple, low cost, and easy to implement. All levels of management found it a useful tool in getting control of important processes.