Institutions provide an opportunity for the reëducation of patients in groups. The therapy of small groups is based on the following principles: (1) Intellectualization—the discussion of fundamental ideas in reference to neurosis, and emotional reactions; (2) patient to patient transference—accomplished by identification of new patients with those who have already developed a transference to the psychiatrist; (3) group catharsis—in which the discussion of family conflicts provides patients with the opportunity of expressing their own conflicts; (4) group interaction—in which the patients learn that their problems are not unique, and hence their recovery is possible. Discussion of the method includes practical suggestions for organizing group psychotherapy. According to the author it is an effective therapy.