THE PROJECT SOUGHT TO ESTABLISH VOCATIONAL ASSESSMENT PROCEDURES, PROVIDE A WORK CONDITIONING PROGRAM TO INCREASE WORK POTENTIAL, AND PROVIDE AFTERCARE SERVICE AND FOLLOWUP. THE MAJOR HYPOTHESIS WAS THAT PATIENTS GIVEN A PROGRAM OF WORK CONDITIONING WERE MORE LIKELY TO BE PLACED IN WORK SITUATIONS IN THE COMMUNITY AND TO REMAIN LONGER OUTSIDE THE HOSPITAL THAN CONTROL GROUPS, ONE HAVING ONLY REGULAR HOSPITAL PROCEDURES AND THE OTHER HAVING ONLY VOCATIONAL SERVICES. CLIENTS IN BOTH GROUPS OF THE REHABILITATION PROJECT FOUND EMPLOYMENT IN THE COMMUNITY, BUT THE DIFFERENCE IN NUMBERS EMPLOYED WAS NOT SIGNIFICANT. HOWEVER, THE NUMBER EMPLOYED IN THE VOCATIONAL SERVICES ALONE GROUP WAS SIGNIFICANTLY MORE THAN THAT IN THE REGULAR HOSPITAL PROGRAM GROUP. THE HOSPITAL RETURN RATE WAS 50 PERCENT FOR THE REGULAR HOSPITAL PROGRAM GROUP, 19 PERCENT FOR THE GROUP RECEIVING BOTH WORK CONDITIONING AND VOCATIONAL SERVICES, AND ONLY 14 PERCENT FOR THE GROUP RECEIVING VOCATIONAL SERVICES ALONE. WORK CONDITIONING DID NOT INCREASE THE POTENTIAL FOR DISCHARGE OF THE PATIENT OR HELP PROLONG HIS STAY IN THE COMMUNITY. WORK CONDITIONING PER SE MAY BE A NEGATIVE FACTOR IN THE SPEEDY DISCHARGE OF THE CHRONIC SCHIZOPHRENIC PATIENT. RESULTS INDICATE THAT VOCATIONAL REHABILITATION SERVICES PLUS FOLLOWUP IS THE MORE EFFECTIVE TREATMENT AND DESERVES FURTHER CONSIDERATION IN PLANNING FOR CLIENT REHABILITATION. IT WAS RECOMMENDED THAT THE EFFECTIVENESS OF HOSPITAL WORK AREAS BE INCREASED THROUGH INSERVICE TRAINING OF WORK SUPERVISORS TO MAKE JOB TRAINING REALISTIC IN TERMS OF ACTUAL EMPLOYMENT POSSIBILITIES AND THAT THE CUSTODIAL ATTITUDE OF HOSPITAL PERSONNEL BE REDUCED. (JK)