THE FEDERAL PRISON SYSTEM DIFFERS FROM MOST STATE SYSTEMS IN THAT MENTALLY ILL OR RETARDED INMATES ARE CARED FOR BY THE SAME SYSTEM IN WHICH THEY ARE INCARCERATED, WHEREAS MANY STATES RELY ON SEPARATE MENTAL HEALTH DEPARTMENTS TO TREAT SUCH INMATES. ALMOST NO SEVERELY RETARDED INDIVIDUALS ARE INCARCERATED, SINCE ALL COURTS HAVE THE OBLIGATION NOT TO TRY, CONVICT, AND SENTENCE PEOPLE WHO CANNOT UNDERSTAND COURT PROCEEDINGS. THE FEW RETARDED INMATES IN THE SYSTEM ARE TREATED ON AN INDIVIDUAL BASIS RATHER THAN TRANSFERRED TO IDENTIFIABLE SPECIAL UNITS OR INSTITUTIONS AS IS THE CASE FOR MENTALLY ILL INMATES. ALTHOUGH IT IS DIFFICULT TO IDENTIFY MENTALLY ILL INMATES, THE BEST ESTIMATES SUGGEST THAT 2 PERCENT OF ALL FEDERAL INMATES ARE PSYCHOTIC, 50 PERCENT HAVE PERSONALITY DISORDERS, 8 PERCENT ARE NEUROTIC, AND 14 PERCENT SUFFER FROM DEPRESSION. IN 1972, THE NATIONAL INSTITUTE OF MENTAL HEALTH CHARGED THAT FEDERAL PRISONS WERE FAILING TO PROVIDE ADEQUATE TREATMENT TO MENTALLY ILL PATIENTS. ALTHOUGH THE BUREAU OF PRISONS HAS SOUGHT TO ADDRESS THESE PROBLEMS, MORE NEEDS TO BE DONE. THE DETECTION AND CARE OF MENTALLY ILL PATIENTS ARE THE RESPONSIBILITIES OF TWO BRANCHES WITHIN THE BUREAU OF PSYCHOLOGY SERVICES, IN WHICH PSYCHOLOGISTS WORK NOT ONLY WITH PSYCHOTICS BUT WITH INMATES SUFFERING FROM SUCH PROBLEMS AS DRUG AND ALCOHOL ADDICTION AND DEPRESSION. HOWEVER THE BUREAU'S PROGRAMS ARE STILL PLAGUED BY PROBLEMS ARISING FROM LACK OF STAFF AND BUDGETARY RESOURCES, LITIGATION RELATING TO THE RIGHT OF INMATES BOTH TO RECEIVE AND REFUSE TREATMENT, THE NEED FOR RESEARCH, AND POOR QUALITY PROGRAMS AND STAFF. REFERENCES ARE PROVIDED.