THE METHODS FOR HANDLING AND TREATING MENTALLY DISTURBED OFFENDERS ARE DESCRIBED, AND IT IS NOTED THAT METHODS ARE DIVERSE AND VARY FROM STATE TO STATE. A NEW ENGLAND STUDY OF SPECIAL OFFENDERS WAS CONDUCTED IN 1972-73 TO DETERMINE THE NATURE AND EXTENT OF PROBLEMS PRESENTED BY SPECIAL OFFENDERS INCARCERATED IN MAXIMUM SECURITY INSTITUTIONS IN THE REGION. KEY PERSONNEL AT MENTAL HEALTH INSTITUTIONS WERE ASKED TO LIST SPECIAL OFFENDERS AND THEIR REASONS FOR CLASSIFYING THEM AS SUCH. THE RECORDS OF MENTAL HOSPITAL FACILITIES IN THE STATES WERE ALSO EXAMINED. THIS HISTORICAL DATA WAS COUPLED WITH THE CURRENT PSYCHIATRIC AND INSTITUTIONAL STATUS OF THESE SPECIAL OFFENDERS TO PROVIDE BACKGROUND DATA FOR THIS DISCUSSION. IN NEW ENGLAND'S MAXIMUM SECURITY INSTITUTIONS, NEARLY 60 PERCENT OF 365 OFFENDERS, IDENTIFIED AS DISRUPTIVE AND DIAGNOSED AS HAVING SOME TYPE OF PSYCHIATRIC DISTURBANCE, WERE ADMITTED AT LEAST ONCE TO A STATE MENTAL HOSPITAL. THE AVERAGE NUMBER OF ADMISSIONS WAS 2.6 PER OFFENDER AMOUNTING TO AN AVERAGE OF 3 MONTHS PER ADMISSION. THE EXTENT OF PREVIOUS HOSPITALIZATIONS SUGGESTS THAT IT IS IMPERATIVE FOR CORRECTIONAL AND MENTAL HEALTH AUTHORITIES TO WORK MORE CLOSELY TOGETHER IN PLANNING FOR THE CARE, CUSTODY, AND TREATMENT OF THESE OFFENDERS. THE ESTABLISHMENT OF REGIONAL MENTAL HEALTH PROGRAMS AND INSTITUTIONS BY THE FEDERAL GOVERNMENT IS BEING CONSIDERED. (AUTHOR ABSTRACT MODIFIED--DAG)