Caring, as distinct from the physical surroundings and the social system in which it occurs, cannot be bought and cannot be professionalized. In addition, while caring is a vital element in dealing with psychiatric illness, it is both strenuous as well as unmeasurable, and thus more difficult to supply and finance than professional treatment or material care. Halfway houses, which now cover a great variety of facilities, try to provide a setting in which caring can occur. Small community care centers in Vermont exemplify the type of facility that provides a caring environment. These facilities are enriched by a social support system supplied by area community health centers. Unfortunately, the pressure of third-party payers has brought about a professionalization of staff as the halfway houses try to receive adequate financial compensation. As a result, the current third-party payment system is working to remove the element of caring from the very halfway houses designed to allow it. In order to rectify this situation, third-party payers must be convinced that caring is an essential ingredient in dealing with psychiatric illnesses, and that it must be provided by non-professionals even though this reduces the ability to provide quality control. (Author/EB)