This paper discusses and refutes five assumptions about deinstitutionalization: mental hospitals are harmful and are not needed, outpatient treatment is what chronically mentally ill patients really need, the public wants deinstitutionalization, deinstitutionalization will cost less, and someone else is ultimately responsible (to blame) for the care of these patients. In addition, the author cites lack of federal funding as the major impediment to adequate aftercare for discharged patients. He urges for diverse levels of treatment and supportive services in both the community and the hospital environments. He feels the current policy indiscriminately provides patients with only one type of mental health care alternative.