Findings from the study suggest that placement stability among young persons admitted into residential treatment programs is greatest in Rate Classification Level (RCL) 14 (high level, more restrictive with a greater degree of treatment oriented services) programs and declines as the level of care decreases. This finding holds true for both residents with and without prior residential placements. Results of the study show that when properly assessed and placed into the appropriate level of care at the onset, the majority of children exit the residential care system altogether and return home or to a home-like setting sooner and at a lower cost. Placement instability or unplanned discharge is a significant problem for children admitted into residential treatment programs. Recently, increased attention has been given to reducing multiple placements among children in out of home care. The State of California in particular has made numerous strides in increasing the availability of placement options other than residential treatment. The purpose of this study was to determine the rates of placement stability (planned discharge) among the available residential levels of care in California, thereby providing a better understanding of the effect placement instability has on children’s behavioral functioning across time. Data were collected on a study sample of 8,933 children and adolescents placed into residential care facilities in California during 1995 to 2001. Figures, references