MOST FEDERAL AND STATE PRISONS NEITHER IDENTIFY ALL INMATES NEEDING HELP NOR PROVIDE PROPER CARE TO THOSE THEY DO TREAT. ALTHOUGH LIMITED FUNDING AND PERSONNEL SHORTAGES HAVE HINDERED MENTAL HEALTH SERVICES, IMPROVED ADMINISTRATION CAN CORRECT MANY INADEQUACIES. AT THE STATE LEVEL, ADDITIONAL IMPROVEMENTS CAN BE MADE IF FEDERAL PROGRAMS OPERATED BY LEAA AND THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE (HEW) ARE MORE EXTENSIVELY USED FOR THE MENTAL HEALTH CARE OF INMATES. EFFECTIVE ADMINISTRATION OF PRISON MENTAL HEALTH PROGRAMS REQUIRES INFORMATION ON INMATES' NEEDS, ADEQUATE RECORDS, GOOD USE OF STAFF, EFFECTIVE MONITORING AND EVALUATION OF PROGRAMS, AND INDEPENDENT REVIEW OF ACTIVITIES. TO VARYING DEGREES, ADMINISTRATION IN FEDERAL AND STATE PRISONS SYSTEMS LACK THESE NEEDED ELEMENTS. A NUMBER OF RECOMMENDATIONS ARE GIVEN FOR IMPROVING MENTAL HEALTH CARE IN FEDERAL AND STATE PRISONS AND THE FOLLOWING SUGGESTIONS ARE MADE FOR THE BUREAU OF PRISONS: (1) REVISE SCREENING POLICY TO SPECIFY AND PROVIDE FOR COMPREHENSIVE IDENTIFICATION OF INMATES TO BE REFERRED FOR TREATMENT; (2) IMPROVE THE BASIS FOR ASSESSING PROGRAM NEEDS BY REGULARLY COMPILING AND SUMMARIZING AVAILABLE INFORMATION ON THE EXTENT AND NATURE OF INMATES' MENTAL HEALTH PROBLEMS; (3) REQUIRE THE ESTABLISHMENT OF A CENTRAL FILE FOR EACH INMATE AND REEMPHASIZE THE NEED FOR ADEQUATE RECORDS OF INMATE PROBLEMS AND TREATMENT ACTIONS; (4) ESTABLISH GREATER MANAGEMENT CONTROL OVER THE QUALITY AND PERFORMANCE OF SUBSTANCE ABUSE TREATMENT PROGRAMS BY PROMULGATING STANDARDS FOR THEIR CONTENT, STAFFING, AND EVALUATION; AND (5) INCREASE MANAGEMENT SURVEILLANCE OF THE QUALITY OF MENTAL HEALTH SERVICES BY EXPANDED USE OF INDEPENDENT REVIEWS BY OUTSIDE PROFESSIONAL ORGANIZATIONS. RECOMMENDATIONS FOR ACTION BY LEAA AND HEW ALSO ARE INCLUDED. FOOTNOTES, A LIST OF ABBREVIATIONS, AND THREE APPENDIXES ARE PROVIDED.