Return rows from function with expressions

I've written many stored procedures in ms sql and a good many functions in
postgres, but I'm rather unsure of how to get a list back from a postgres
function which is not based on a table. Example from sql server:

set ANSI_NULLS ON
set QUOTED_IDENTIFIER ON
GO
ALTER PROCEDURE [dbo].[procPatient]
    @PatStatusID int = 0
AS
BEGIN
    SELECT PatID, PatFName + ' ' + PatLName as pname  FROM tblPatient WHERE
PatStatusID = @PatStatusID
END

Output from the sproc above is like
PatID  pname
123    Merton Baffled
129    Jim Puzzled

I've spent a good deal of time reading here and in the pg docs about
functions that use SETOF. I can't find a plain and simple way to do
something like the above. Is there? I simply need to pass in some params,
and do some evals inside the function and return a set that includes some
cols that are not part of the base table. I've seen solutions that involve
OUT params; a method which uses RECORD that requires the columns to be
defined in the call; refcursors (which I don't really understand); are those
the only options? A simple example like the one I've used for sql server
above would be ideal.
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