Background and Purpose-In an inner-London teaching hospital, a randomized trial of "conventional" care versus early discharge to community-based therapy found no significant differences in clinical outcomes between patient groups. This report examines the economic consequences of the alternative strategies. Methods-One hundred sixty-seven patients received the early discharge package, and 164 received conventional care.Patient utilization of health and social services was recorded over a 12-month period, and cost was determined using data from provider departments and other published sources. Results-Inpatient stay after randomization was 12 days (intervention group) versus 18 days (controls) (Pϭ0.0001).Average units of therapy per patient were as follows: physiotherapy, 22.