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This paper assesses the impact of a specialized transition program for ex-inmates with mental health issues using propensity score matching (PSM). To date, the empirical evidence is limited that intensive services are cost-effective or even necessary for the increasingly diverse population of persons with mental health issues released from correctional custody. Before matching our sample consisted of 2,280 cases and after matching only 274 cases remained with strong match across several key variables that were previously significantly different in the context of the larger sample. Similarly, the PSM matching resulted in relatively equivalent sized groups (138 FTT and 136 OMHC). We used logistic regression to compare these groups on their criminal justice related outcomes (rearrest, reincarceration) for up to 2 years post release. Our findings were counterintuitive in that across all time frames (6, 12, and 24 months) post release the specialized program clients did worse. We discuss these findings in the context of structural issues related to mental health services in the community and the stigma of incarceration.