This paper outlines current inadequacies in hospital-based treatment programs for chronic psychotic patients. The author then describes the structure and organization of an innovative new program in which the basic elements include: interpersonal and resocialization emphasis; a thoroughly humanistic and therapeutic milieu; individualized and psychosocially-based treatment in a three-stage, two-setting design; an implemented continuity of care extended into the community satellite aftercare center; and expanded and enriched roles in the team approach of the staff. Finally, Galin offers six interesting suggestions for research and evaluation which might demonstrate wide applicability of the program.