Many studies have followed the living and work situations of discharged mental patients in the community. To add to this knowledge base, a study of 52 chronic inpatients was conducted over a 3 1/2 year period to examine the effects of deinstitutionalization on the living situations and vocational status of long-hospitalized patients. The patients averaged 39 years of age and 16 years of hospitalization. They were evaluated for living independence at six points in time, and for vocation status at five points in time, from February 1979 to September 1982. Analysis of results showed no significant trends for vocational status. However, results of a repeated measures trend analysis for locational status suggested a significant linear trend. Hence, when chronic patients were discharged into the community, no significant improvement in their work functioning was apparent, nor was there any noticeable pattern of change. But, subjects did tend to move to increasingly independent living situations, though setbacks were noted after a number of years. These setbacks could be accounted for by community resistance and funding shifts. As long as an orderly move to increasingly independent living situations was planned for and was possible, a number of subjects were able to respond to the demand of higher levels of independence. The findings suggest that the degree of living independence and the level of vocational status attained during deinstitutionalization may be related to a multitude of factors both external and internal to the client; the relative contribution of each is a matter for further investigation. (Author/JAC)