Life crises had precipitated institutionalization in all cases in a random selection of State Hospital patients, whose “senile” symptoms were successfully treated during a 6 months' period of therapy based upon crisis theory. Twelve patients, average age 76.4 years, all having diagnoses of chronic brain syndrome or arteriosclerosis with psychosis, were exposed to an intensive treatment and practical action program geared toward discharge and expedited by staff, family, and community collaboration. The post-hospital adjustment of the discharged patients offers an opportunity for study of the recovery potential of the so-called “hopelessly deteriorated” elderly person. The present study offers alternative interpretations of symptoms commonly attributed to organic impairment and suggests some preventive and treatment approaches.