THE PROCESS OF REHABILITATION IS HIGHLY COMPLEX, INVOLVING REHABILITATION OF THE SPIRIT AS WELL AS THE MIND AND BODY. IN PRACTICE, REHABILITATION MEANS THE RESTORTATION OF FUNCTION AND STRUCTURE THROUGH A TRAINING PROCESS WHERE THE CLIENT OR PATIENT SLOWLY LEARNS NEW WAYS OF PERFORMING BASIC FUNCTIONS. BECAUSE REHABILITATION DEALS WITH FUNCTIONS RATHER THAN SYMPTOMS AND SINCE HUMAN BEINGS FUNCTION IN SOCIAL, PSYCHOLOGICAL, AND PHYSICAL SETTINGS, THE PERSON-ENVIRONMENT FIT IS CRUCIAL TO SUCCESSFUL REHABILITATION. A SYSTEMS APPROACH IS APPLIED TO EVALUATE A REHABILITATION UNIT, IN A UNIVERSITY HOSPTIAL EMPHASIZING THE IMPORTANCE OF MEDICAL ANTHROPOLOGISTS IN HELPING MEDICAL ADMINISTRATORS, HOSPITAL ADMINISTRATORS, AND PHYSICIANS DEAL WITH THE COMPLEX PROBLEMS OF TREATING PATIENTS IN THE HOSPITAL SETTING. DETAILED CONSIDERATION IS GIVEN TO PLANNING AND SETTING UP THE UNIT, LEADERSHIP AND SERVICE ROLES, VALUES AND CULTURE ON THE WARD LIFE ON THE WARD, PATIENT ROLES AND PATIENT-STAFF INTERACTIONS, SYSTEMIC PROBLEMS RESULTING IN THE UNIT'S DEMISE, PHASING OUT THE REHABILITATION UNIT AND THE PLANNING ENVIRONMENT. RECOMMENDATIONS TO IMPROVE THE REHABILITATION ENVIRONMENT ARE OFFERED, WITH PARTICULAR ATTENTION TO THE PHYSICAL SETTING OF A UNIT, THE IMPROVEMENT OF STAFF FUNCTIONING AND SATISFACTION, PATIENT-STAFF RELATIONS, AND PSYCHOSOCIAL NEEDS OF PATIENTS. TABLES AND FIGURES, REFERENCES, AND AN INDEX ARE INCLUDED. (DEP)