Scientific advances have fueled both gains in health care outcomes and growth in health care costs (1). Health care for mental illness is no exception, with significant improvements in the treatment of schizophrenia, depression, and other common disorders during the last 20 years. As a general rule, diffusion and implementation of research-based health care proceeds slowly (2). Rates of dissemination and adoption of new treatments are influenced by many factors other than patient needs and scientific evidence. For example, marketing, profit motives, health care cultures, professional and guild issues, spending levels, organizational structures, financing mechanisms, and implementation difficulties all have been shown to influence diffusion (3). Because these factors exhibit great diversity across states, regions, and local agencies, it is perhaps not surprising that health care exhibits a high degree of geographic variation (4). Yet the gap between evidence-based practices and usual services is enormous in mental health (5–8). For example, the Schizophrenia Patient Outcomes Research Team found that less than 30% of schizophrenia outpatients receiving care in two large public mental health systems were prescribed an antipsychotic medication within the recommended dose range and even smaller percentages received evidence-based psychosocial treatments (9). The National Comorbidity Study Replication showed that less than half of persons with mental disorders received any treatment in the past 12 months, only one-third of treatments met minimal standards of adequacy, and those in rural areas as well as racial and ethnic minorities and elders were less likely to receive any treatment (7). Mental health services are similar to general health care services in many ways, particularly for treatments combining medications with a variety of related office visits. Mental health services differ, however, in the relative importance of psychosocial treatments, such as psychotherapy and psychiatric rehabilitation. Unlike new medications, in which implementation of new practices is supported and encouraged by marketing efforts, psychosocial treatments rarely are encouraged by commercial marketing. As is the case with medications that have gone “off patent” and are available in generic form, there is little economic incentive to market psychosocial services since they are not under patent protection. In this article, we explore the importance of diffusion and the variation in adoption of high- and low-value treatment strategies in health care, with a focus on three factors that influence diffusion: informational or attitudinal barriers, funding mechanisms, and profitability. We conclude with several proposals designed to better understand and improve the diffusion of evidence-based treatments for mental illness.