PART V OF THE 1959 BRITISH MENTAL HEALTH ACT PROVIDES FOR CONVICTED PERSONS WHO ARE MENTALLY DISORDERED TO BE TREATED IN PSYCHIATRIC INSTITUTIONS OR HOSPITALS FOR THE MENTALLY HANDICAPPED. SECTION 60 EMPOWERS THE COURTS TO AUTHORIZE HOSPITAL ADMISSION OF CONVICTED OFFENDERS BY MEANS OF A HOSPITAL ORDER, AND SECTION 72 ALLOWS THE SECRETARY OF STATE TO TRANSFER THE MENATLLY DISORDERED INCARCERATED OFFENDER TO HOSPITALS. TWO MAIN SOURCES OF INFORMATION FOR THE STUDY WERE PUBLISHED STATISTICS FOR THE YEARS 1962-64 AND 1972-74 (OBTAINED FROM THE CRIMINAL STATISTICS FOR FOR ENGLAND AND WALES) AND INPATIENT STATISTICS (FROM THE MENTAL HEALTH ENQUIRY FOR ENGLAND AND THE REPORTS ON THE WORKS OF THE PRISON DEPARTMENT). INFORMATION REGARDING THE PATIENTS IN SPECIAL HOSPITALS (HOSPITALS WITH SPECIAL SECURITY PRECAUTIONS) WAS OBTAINED FROM TWO STUDIES OF ADMISSION COHORTS OF PATIENTS CONDUCTED BY THE SPECIAL HOSPITALS RESEARCH UNIT. STUDY DATA SHOW THAT THE INTENTIONS OF THE MENTAL HEALTH ACT ARE NOT BEING FULFILLED. THE COURTS ARE GIVING FEWER HOSPITAL ORDERS, AND INCREASING NUMBERS OF MENTALLY ABNORMAL OFFENDERS ARE IMPRISONED DUE TO THE DIFFICULTIES EXPERIENCED IN THEIR OBTAINING ADMISSION TO THE NATIONAL HEALTH SERVICE SPECIAL HOSPITALS. PROPOSED REGIONAL SECURITY UNITS WILL NOT SOLVE THE PROBLEM IN THE IMMEDIATE FUTURE, AND THEIR ABILITY IN THE LONG TERM TO FORM A VIABLE FORENSIC FACILITY IS DOUBTFUL. THE CURRENT PLIGHT OF MENTALLY ABNORMAL OFFENDERS WOULD APPEAR TO BE BEST ALLEVIATED BY PROVIDING BETTER AND MORE EXTENSIVE PSYCHIATRIC FACILITIES WITHIN THE PENAL SYSTEM ITSELF. TABULAR DATA AND REFERENCES ARE PROVIDED. (RCB)