This article examines the residential treatment alternative in social and historical contexts. It provides recommendations for clearly defining residential treatment services and measuring the effectiveness of residential treatment programs. The study suggests models for family involvement, after care, and follow-up that may enhance the long term success of residential treatment. The research has been designed to assist Orion House, Inc., a residential treatment center for male youth in Newport, Hampshire, and therefore the study includes information about the macro-environment in which Orion House operates. However, suggested methods may be generalized and applied to other residential treatment facilities. Table and references (Published Abstract)