This paper examines the effectiveness of outpatient services delivered to people within 30 days of discharge from a psychiatric hospitalization. The sample consisted of 150 homeless adults with mental illness who were shelter users in the Philadelphia area. The study assessed the re-occurrence of homelessness following hospital discharge. Findings suggest that prompt connection with aftercare services was effective in reducing homelessness for people who used the shelter system a single time in the year prior to their psychiatric hospitalization. For repeated users of the shelter system, the recurrence of homelessness was not correlated to timely outpatient services following hospital discharge. The authors conclude this study to suggest that continuity of care is instrumental in preventing future homelessness among a portion of the homeless mentally ill population. For homeless mentally ill people with recent histories of repeated shelter use, greater diversity and intensity of outpatient services are necessary (authors). [abstract]