Psychologists face new ethical dilemmas as their roles expand in public hospital psychiatric units. Clinical and administrative practices indicate psychological values, models, and interventions are useful and effective when serving seriously mentally ill inpatients. Issues addressing the clinical, administrative, and training competence of psychologists in public hospital settings are discussed. It is recommended that national guidelines be developed to be used by state licensing and hospital credentialing boards in verifying preparation for public inpatient psychiatric practice.Psychologists in public psychiatric inpatient settings have begun adapting to the changing mental health service delivery system. The "medicalization" of diagnostic and intervention techniques and psychiatrists' renewed identification with the medical profession have resulted in some diminished clinical options for psychologists (Paul & Menditto, 1992). Changes in hospital management have resulted in ancillary activities, such as psychotherapy and psychoeducation, being provided by nurses, social workers, and occupational therapists. Pressures from consumer groups and insurers have led to shorter hospital stays and greater clinical accountability. Responding to these patterns, psychologists in public settings have started expanding their roles and identities into new clinical, administrative, and training areas and have raised new ethical dilemmas that warrant examination by the profession.