|Hirschfeld developed a new therapeutic technique for homosexual, transvestite, and other intersexual patients in 1914; it was called adaptation therapy or psychological milieu therapy. According to this therapy, those seeking advice are supported in living "according to their nature." The sole job of the physician is seen as helping patients gain access to a circle of "intellectually sophisticated people like themselves."
"This is why the doctor must be replaced by people who bring the same understanding and tolerance to the patient, and whom the patient can confide in in the same way as in the doctor. People with the same 'condition' are very suitable in this regard, especially those who have already achieved a higher level of awareness." (Hirschfeld 1927). 5
The Institute refered homosexual patients to the Scientific Humanitarian Committee and transvestites to the Club D'Eon 3 . In addition, socializing in Karl Giese's room played an important therapeutic role.
Hirschfeld's adaptation therapy was harshly criticized by contemporaries who were outraged that he would reinforce something "sick", rather than using therapy to eliminate it.