This report describes the evaluation of the National Long-Term Care (Channeling) Demonstration, a rigorous test of comprehensive case management of community care as a way of containing long-term care costs for the impaired elderly while providing adequate care to those in need. The evaluation process is presented as an experimental design with random assignment to treatment or control group status used to test two models of channeling: Basic Case Management (five sites) and Financial Control (five sites). Channeling, the demonstration, and the evaluation process are briefly reviewed. Evaluation results are discussed in the areas of: (1) implementation; (2) channeling's effects on service use and cost; and (3) channeling's effects on well-being, functioning, and mortality. Confidence in the results is considered and generalizability of results to other interventions is discussed. Findings are presented indicating that, while the expansion of case management and community services was not shown to reduce nursing home placement, hospitalization, or mortality, channeling was found to yield benefits in the form of increased home care, reduced unmet need, and greater life satisfaction for clients and their informal caregivers. A list of channeling evaluation reports and data collection instruments is included. (NB)