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To meet the needs of adolescents on adult wards of the Massachusetts State Hospitals and inpatient community mental health centers, and to carry out the educational mandates of Chapter 766 and P.L. 94-142 (the Education for All Handicapped Children Act), the State Hospital Education Programs (SHEP) system was developed. SHEP adheres to three basic objectives: (1) to facilitate team evaluation and individual education plans; (2) to provide direct educational programing and services; and (3) to facilitate linkages with local educational agencies and smooth transitions to community based programs. Development of SHEP since its inception is considered, and major thrusts of SHEP are pointed out. (SBH)