This is a non-technical report based on the final report of the first year evaluation of the Head Start/Medicaid Early and Periodic Screening, Diagnosis and Treatment (EPSDT) Collaborative Effort, a demonstration program initiated by the Office of Child Development (OCD)/HEW in 1974. The report presents and analyzes data collected during the first year of the program, sets forth key policy considerations based on study findings, and seeks to provide direction for policy and program planning. Section I presents a summary of the major findings by specific issue area. Section II presents background information on the EPSDT and Head Start Programs and the collaborative effort. Section III describes the study methodology employed in the evaluation. Section IV discusses the organization and operation of the Head Start/EPSDT Collaborative Effort. Section V examines Medicaid certification results and reviews prior health care status of participating children. Section VI analyzes the provision of health services during the first year of the collaborative effort. Section VII offers an analysis of the state EPSDT plans and compares these to the Head Start Program Performance Standards. Section VIII cites the technical assistance needs of the projects. Section IX provides cost utilization factors related to the collaborative effort. This report is to be circulated to Head Start projects and interested agencies to provide them with background information for administering and improving health services to low-income preschool children. (Author/MS)