This paper examines problems associated with psychiatric diagnoses. In the early 1960s, Karl Menninger and others prepared a treatise on the problems with psychiatric diagnosis, both from the standpoint of inherent weaknesses in the system and from an awareness of professional abuse of the system. The paper concentrates on three aspects of misdiagnosis: (1) inter- and intra-profession disputes over the proper target population and the complexity of intervention strategy; (2) the apparent imprecision in diagnostic classifications; and (3) professional dishonesty in assigning diagnoses for the sake of third-party payment. It is recommendd that the first issue be addressed by a major reconstruction of the diagnostic approach and by a cessation of attempts to define differences between and among subgroups of mental health professionals. Such changes would help correct the other issues by providing descriptive diagnoses which would permit more accurate support for selective intervention, enhance communication among professionals, and increase accountability. It would also inhibit unethical or dishonest diagnoses by employing a more responsive diagnostic system. The papers assert that until the profession decides to manage itself, there will always be the pressure to prostitute the profession and the clients in a system which values cost control over client service. (RJM)