The purpose of this study was twofold: to examine the patient characte
ristics at discharge from an acute psychiatric unit that were associat
ed with an increased likelihood of rehospitalization within the follow
ing six months, and to examine the relationship between rehospitalizat
ion and the nature of psychiatric aftercare in a well-integrated hospi
tal and community based psychiatric service. The study reviewed the ex
tent of psychiatric rehospitalization following the closure of large n
umbers of institutional psychiatric beds. At six months after discharg
e 38% of the patients had been readmitted to an institution, most comm
only a hospital. Despite the provision of an integrated hospital and c
ommunity health service with excellent welfare support, dissatisfactio
n with finances independently exerted an influence on the risk of read
mission. Implications for future research and treatment planning are d
iscussed focussing on the complex integration of health and welfare se
rvices.