Deinstitutionalization refers to the provision of care for psychiatrically-disabled individuals within the community, rather than in institutions. Thus far, evaluation of vocationally oriented psychosocial rehabilitation programs developed to substitute for institutions have failed to assess reasons for dropping out of or refusing to participate in these programs. To identify factors which are likely to contribute to the chronically emotionally disabled client's premature termination or refusal to participate in a psychosocial rehabilitation program, chronically emotionally disabled adults (N=38) who were invited to participate in a vocationally oriented psychosocial rehabilitation program completed measures of self-concept, overall level of psychopathology, expectancy for success in the program, and aspects of psychosocial functioning. Individuals who refused participation in the program (Refusers) were compared with those who dropped out within 2 months (Dropouts) and those who participated in the program for 6 months (Remainers). Statistical analyses showed that expectancy of positive change was not related to dropout. Refusers perceived themselves as receiving less help and support from friends than the Dropouts or Remainers, and individuals who perceived themselves as receiving more social support tended to have a better self-concept and were better satisfied with their current living situation. The high combined rate of Refusers and Dropouts (44%) suggests that rehabilitation programs are not serving the needs of a sizable proportion of the client population. (WAS)