Undergraduate social work programs in rural areas can meet their students' learning needs and function as integral parts of the community health system, at the same time. Based on open systems and exchange theories, the author advocates enhanced resource sharing between undergraduate programs and community social and health agencies. Within the context of the need for increased experiential learning opportunities for students and for planning activities appropriate for student participation, a successful deinstitutionalization needs assessment project is described. As a generic model, the project has applicability to other health problem areas and settings.