The life situations of discharged mental hospital patients were examined by comparing living arrangements, employment, financial support, and role functioning before and after hospitalization for a sample of patients released from three state mental hospitals. Results indicate significant negative change for both males and females. These negative consequences seemed to be most often due to loss of employment and the accompanying decrease in financial support. Three possible explanations for the findings are discussed: a) effects of the hospitalization; b) effects of the psychiatric illness; or c) prior role socialization and competence