With considerable evidence that psychiatric hospitalization alone does not insure post-hospital community adjustment, many assume that improved hospital treatment programs are the answer to the psychiatric patient's successful community functioning. Although institutionalization has demonstrated value in cases of crisis and severe disorientation where a change in the total environment is essential, there is reason to question its effectiveness in realizing the final goal of therapeutic treatment, that of reestablishing the person within the community. The alternative advocated here involves the utilization of the community itself in effecting rehabilitation. The theoretical framework for this research focuses on three main points. The first is that psychiatric hospitalization alone cannot insure an ex-patient's community adjustment. Secondly, even the presently popular alternative of brief, intermittent hospitalization appears to be inadequate in that it also often fosters the institutional orientation of dependency, maintaining the "patient" identity, thus encouraging return to the hospital. Finally, it is proposed that the appropriate alternative in effecting community adjustment is a structured, community-based "follow-up" program which affords the patient support and counseling, but does so independent from the hospital setting.The proposition that psychiatric hospitalization alone cannot foster rehabilitation in the community is suggested by a large number of researches considering hospital treatment and later community adjustment. For example, Forsythe and Fairweather (~96~) found little relation between withinhospital measures, such as ward behavior, and community adjustment, and