A study examined the feasibility of using standardized health evaluation, counseling, and rehabilitation to increase employability of welfare recipients and to develop a demonstration model for health service suitable for national implementation in the WIN (Work Incentive Program). Health evaluations of referred welfare clients showed that the commonest health related problems were hypochondriasis, neuroses, obesity, and alcoholism. Clients with remediable health problems were randomly assigned to health intervention and control groups. The health rehabilitation received by those in the intervention group decreased the number of health complaints and reversed hypochondriasis. In addition to other positive findings, welfare grant reduction was substantially greater for intervention than control clients. A series of surveys were conducted to assist in evaluating the project and developing the demonstration model. Finally, the demonstration model was proposed, specifying target population, modes of delivery, staffing, staff training and tasks, location of staff, administrative pattern, process and implementation. (A major portion of this document includes the following appended information: the feasibility study, a comparison of the feasibility and demonstration projects, data tables, client case resumes, survey instruments, report forms, and client charts.) (Author/BM)