The author reviews current practices in the educational diagnosis of exceptional children and proposes a model for more effective identification, screening, and evaluation of students with special needs. Problems and benefits of models in current use (multidisciplinary team approach, the training based model, and the psychometric approach) are delineated. The multidisciplinary approach is said to foster linear rather than collaborative services. The psychometric approach is seen to penalize for cultural and social differences and to defy principles of least restrictive environment and due process. The author suggests a change in philosophy to effectively implement the multidisciplinary team approach in a therapeutic school environment with defined roles for ancillary staff. (CL)