With impending fiscal shortages limiting the growth of new community mental health services and the ability of mental hospitals to perform contemporary tasks remaining dubious, increased attention is being directed throughout the country to the role of state hospitals. Citizens and professionals in Massachusetts concluded that the needs of individuals now treated in mental hospitals are better met via community-based services as they become available than by services now provided in state hospitals. Consequently, public mental hospitals should be phased down over a 5-year period of time and their funds redeployed to community services. Among the factors affecting the success of this program shift are continuity of care for discharged patients, community acceptance of the mentally ill, and redeployment of personnel to community facilities.