Abstract
Without reform and linkage to unified care system, state hospitals may become overcrowded and underfunded during the coming decades. The author delineates ten epidemiologic, demographic, and systemic factors that point to increases in episodes of chronic illness which are most likely to end in state hospitalization. General hospitals, nursing homes, and community-based programs are compared as possible substitutes for state hospitals. Finally the author recommends twelve internal reforms to strengthen the state hospital system as an integral part of the chronic care network.

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