In 1971 Peninsula Hospital's community mental health center was given full control over expenditures of Short-Doyle and Medicaid funds. A committee was established to regulate use of services by reviewing proposed or ongoing individual treatment plans, in a case-conference format that included the attending therapist and the hospital staff involved. The plan has effected considerable savings and eliminated unnecessarily prolonged use of services without ignoring patients' needs or affecting individual styles of treatment. The committee also has several unpredicted areas of usefulness, such as staff education and detection of problem areas. The author feels that the committee's operation can serve as a model for controlling expenditures for hospital-based services.