Traditional published norms for neuropsychological tests that do not consid
er demographic effects can lead to spuriously high false positive rates amo
ng low-educated elderly individuals. This problem may be compounded when tr
ying to identify dementia in psychogeriatric patients whose cognitive funct
ioning is also compromised by psychiatric illness. This study investigated
the clinical utility of low education neuropsychological test norms to disc
riminate amongst demented and nondemented psychogeriatric inpatients and he
althy community elderly with limited education. Results indicated that the
Mattis Dementia Rating Scale (MDRS), the Fuld Object Memory Evaluation (FOM
E), the Mini-Mental State Examination (MMSE), and a Clock drawing task had
high discriminability in differentiating the three groups. Application of d
emographically corrected norms has important implications for diagnosis and
treatment planning, especially when neuropsychological status is complicat
ed by psychiatric illness.