The document presents an analysis of recent literature on the deinstitutionalization of emotionally disturbed persons. Discussed are opposing views with emphasis on the idea of reliance on community resources and the present trend toward the provision of a continuum of treatment alternatives. Brief sections cover issues related to such problems as the selection of patients for community care, the treatment course of patients in the community, financial and fiscal problems, legal and quasi-legal problems, and accountability. The author describes basic concepts in the functionalist approach to social forms and the application of these concepts to the functions of asylum and custody. It is concluded that the deinstitutionalization movement can best meet its goals through the avoidance of territorial arguments and the consideration of such programs as hospital-based outpatient care, brief hospitalization, and community outreach. A bibliography of approximately 480 references is provided. (IM)