The authors surveyed the managed-care readiness of academic psychiatry to derive a baseline for comparison of future surveys. A 25-item Internet- based survey was used to assess the organizational structure and programs, quality- and performance-improvement initiatives, and information-systems capacity of academic psychiatry. A website (bstpractice.com) was created for potential respondents. Thirty-five departments participated; a majority indicated involvement in caring for managed-care patients, and some were managing care. The authors concluded that academic psychiatry is developing the infrastructure to assume risk in order to manage care in a contemporary environment.