Objective: Characteristics of individual mental health providers and o
f treatment settings were examined to determine their effects can prov
iders' expectations about the improvement of patients with serious men
tal illness. Methods: The sample consisted of 1,567 treatment provider
s working in 107 inpatient and outpatient units or programs in 29 Vete
rans Affairs mental health facilities. They completed a questionnaire
about their prognostic expectations and a broad range of attitudes tow
ard job satisfaction, professional relations, and team functioning. Un
it or program directors of all 107 units completed another questionnai
re about the average functional ability of patients, unit workload, an
d unit size. Hierarchical linear modeling was used to assess the effec
ts of both individual and unit-level attributes on providers' expectat
ions of improvement in clinical symptomatology and social-functional s
kills of patients in their care. Results: The providers had generally
low expectations about the improvement of patients with serious mental
illness. Expectations were higher among staff in units or programs th
at were smaller and that had an outpatient focus, a greater proportion
of staff involved in the treatment team, and higher-functioning patie
nts, Individual characteristics significantly associated with prognost
ic expectations were occupation, age, and membership on the treatment
team. Conclusions: Prognostic expectations among providers of care to
persons with serious mental illness vary with identifiable individual
and unit or program characteristics. The latter may be amenable to man
ipulation and intervention to improve mental health providers' prognos
tic expectations.