Twenty-five patients from a large state hospital selected for placement in nursing homes were compared with a matched group of 25 patients residing on the same or similar wards but not selected for placement. Comparisons for 43 measures of disturbed psychiatric behaviors, self-care activities, physical and mental status at time of selection, 30 days later, and 6 months later were made to determine whether there were any initial differences, any overall differences for the entire period, and any differences for comparative change. The 25 mental patients selected for placement in nursing homes were functioning far better from a psychiatric standpoint at the time of selection and during the entire 6-month period. There were no consistent differences between groups for improvement. These findings controvert the view that state hospitals are indiscriminately sending patients to nursing homes.