Many States and local governing units are looking to the principles of managed care as a way to control, or at least contain, costs in juvenile justice and child welfare systems. When designing a managed care program, a State must address the following questions: (1) What population is to be covered, what are its service need characteristics, and what are the legal mandates? (2) What benefits are included in the plan? (3) What are the goals of the system and which outcomes will be measured to determine success? (4) How will the system be priced and funded and how will risk be shared? (5) How will "gatekeeping," use management and case management be handled under a managed care plan? How will public and private roles and responsibilities change? (6) How will quality be ensured? and (7) What information must be managed and what MIS capacity is needed?