The focus was on the placement options available for mentally disordered inmates, the adequacy of procedures used to identify the inmates and transfer them to mental health facilities, and the extent to which the procedures used met the needs of these inmates. Respondents estimated on average that 5.8 percent of State department of corrections (DOC) inmates were 'seriously mentally ill' and that an additional 37.7 percent were suffering from a psychological problem that could benefit from treatment. The States operated with different philosophies about how to handle mentally disordered inmates and, consequently, identified widely divergent percentages of their inmates as warranting placement in a mental health facility. Once the prison psychiatrist or psychologist recommended an inmate transfer, it was a rare for a review system to reverse that decision. A sizable percentage of staff (47.6 percent) indicated that 'too few' inmates were transferred to mental health settings. Prison staff were considerably less satisfied with both the procedures and the receptivity of the mental health facilities than were the staff at either the DOC central staff or the DOC mental hospitals and treatment centers. Further research is needed on inmates, the system, and the agencies responsible for their treatment. Tabular data, 3 notes, and 20 references are provided.