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This large Veterans Administration cooperative study sought to identify the ward milieu characteristics of effective psychiatric programs. It was developed as a multivariable, correlational study that involved systematic observations of program characteristics and outcome effectiveness of wards as they operated in their usual manner. Seventy‐nine wards in 18 hospitals provided 11,283 patients eligible for follow‐up. Eleven treatment characteristics were found to be correlated to patients' community adjustment 3 months after discharge. These characteristics were classified into five general categories: Patient‐staff interaction, patient activities, medication practices, ward physical environment, and nursing staff rotation. The major conclusions are: (1) wards do differ in their effectiveness as measured by ratings of patient posthospital adjustment; and (2) treatment characteristics make a difference in program effectiveness as measured by patients' posthospital adjustment.

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