Survey data from a national, random sample of643 service providers were analyzed to examine past, current, and future utilization of integrated and segregated day and employment services. The percentage ofpersons in integrated employment increased to 30% in 1991,from a total of17% documented during 1986. However, the average number of persons served in segregated, facility-based work programs has also increased since 1986, and half the respondents (N = 643) either planned to start new facility-based programs, maintain the current service capacity, or increase the number served by 1997. Implications of a dual system of integrated versus segregated services and potential incentives for stimulating conversion of facility-based services are discussed.DESCRIPTORS: day program, employment, public policy, sheltered workshops, supported employment During the 1980s,the philosophical underpinnings of community-based day and employment services for individuals with mental retardation and other developmental disabilities shifted from sanctioning facilitybased services to a preferred endorsement of integrated, supported employment (Kiernan, McGaughey, & Schalock, 1988). The advantages of integrated employment over segregated day and employment programs for persons with disabilities, families, employers, and society at large have been well documented, including higher wages and their accompanying tax contributions, social interaction with persons who do not have disabilities, and expanded opportunities for career choice