This is the final report on the first year evaluation of the Head Start/Medicaid Early and Periodic Screening, Diagnosis and Treatment (EPSDT) Collaborative Effort, a demonstration program that was initiated by the Office of Child Development OCD/HEW in 1974. In initiating the program, OCD/HEW set forth the following objectives: (1) to assess the benefits in terms of increased services for both Head Start and non-Head Start children and to establish the dollar value of these services; (2) to determine any barriers which prevent the Head Start program from making maximum use of Medicaid, EPSDT to pay for required health services provided to Medicaid eligible children in local programs; and (3) to analyze long-term program and policy issues concerning Head Start services to young children as a basis for improving those services in Head Start/Medicaid EPSDT. This detailed report presents and analyzes data collected during the first year of the program and also sets forth key policy considerations based on study findings. Included are charts and tables. (Author/MS)