With the introduction of managed health care, the medical field finds itself in what seems to be an ethically compromised position. Changes in society have created a new role for the physician: that of manager of health care resources. Ethical principles have not evolved quickly enough to keep pace with these changes. Psychiatry faces unique problems because mental health care costs have been singled out for reduction by health care purchasers. Despite this present state of turmoil and transition, the profession needs to provide its students with the necessary training to practice ethical psychiatry. The author suggests teaching strategies and exercises to assist faculty wishing to include the ethics of cost containment in their curriculum.