THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Tuesday, August 15, 1995               TAG: 9508150333
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: CHARLOTTESVILLE                    LENGTH: Short :   46 lines

BEYER: MANAGED CARE FOR MENTAL ILLNESSES WOULD BE A MISTAKE

An Allen administration plan to hire a private company to oversee local mental health services could jeopardize care for many needy people, Lt. Gov. Donald S. Beyer said.

Beyer, speaking to the 44th annual Local Government Officials Conference on Sunday, criticized a managed-care pilot project that Republican Gov. George F. Allen's administration wants to launch early next year in Hampton Roads.

The managed-care company would not provide patient treatment, but would oversee how local community service boards administer services for people who cannot afford to pay or whose insurance coverage has run out.

Beyer, a Democrat, said he fears private, for-profit companies could impose arbitrary limits on services.

``In the race to contain costs, leaders of community service boards won't forget the emotional costs'' borne by those actually dealing with mental illness, he said.

``So many mental health problems are long term'' that efforts to manage care by limiting the number of annual visits to therapists, for example, would be heartless, Beyer said.

Those dealing with sexual abuse, in particular, are facing ``issues that they struggle with for years,'' he said.

Dr. Timothy Kelly, state commissioner of mental health, mental retardation and substance abuse services, said in a recent interview with The Associated Press that contracting with a managed-care company would provide patients with better service.

Kelly said a company has data and resources at its disposal that could help identify the best treatment for patients. That could allow patients to be treated quicker, which also would save money for the state, he said.

The three-day local government conference at the University of Virginia brought together almost 900 individuals from city and county governments.

Allen was scheduled to address the conference Monday morning but had to cancel the appearance because he is still recuperating from surgery. Allen damaged ligaments in his knee last month in a pickup football game. by CNB