• The community mental health movement characterized state hospitals as iatrogenic, as fostering "institutionalitis," leaving the states with a pernicious reputation. Federal guidelines of the late 1960s prohibited the states from becoming part of the governance of community mental health centers. By the 1970s state mental health departments had become little more than grant writers, simply chasing the federal dollar. By the time President Reagan pulled the plug on the community mental health centers program in 1981, the states' sense of responsibility for psychiatric patients had atrophied.