Clients who were either admitted to a long-term care program (N = 7251) or assessed but not admitted to the program (N = 1680) were evaluated for their utilization of health care services in 1981–82. Mean utilization values were calculated and analyses of variance were performed in order to respond to: a) whether utilization patterns of clients admitted to the program differed from patterns of clients who were not admitted; b) whether clients admitted to institutions were different from clients admitted to the program who stayed at home. The data show that among clients who were not admitted to the program utilization levels nearly tripled during the year following assessments. Among clients who were admitted to the program, hospital use decreased for facility dwellers only. The findings suggest that admission to the program can reduce health care utilization particularly if medical surveillance is provided in institutions.