Recent developments in the organization of health care services and financing, usually subsumed within the category of managed care, seem to be altering the character of the providing institutions. The purpose of this presentation is (1) to clarify what managed care is and what the operating assumptions are of those who advocate for it; (2) to examine the impact of managed care, and the associated assumptions, on the character of and moral analysis within nongovernmental health care institutions; and (3) to suggest possible correctives to the negative aspects of managed care, while acknowledging the numerous benefits. The preferred corrective is the “community of care,” an institutional model based on value-centered organizational identity.