Treatment outcome for a group of severely disturbed (mostly black) children in a psychodynamic, hospital-based program over several years is assessed. The study indicates that day treatment may be effective for certain children from chaotic homes & who present with behavior problems, attention deficit disorder, & compulsivity. Factros associated with poor outcome in day treatment include child abuse/maltreatent, parental substance abuse, suicidality, & assaultive/destructivre behavior. 13 refs.