Collaboration between health and education providers is essential to address the urgent needs of children and families most at risk of school failure and severe health problems. Collaboration represents a fundamental change in the way education and health systems think about, identify, and meet the needs of children, youth, and families utilizing a holistic approach. This report, organized into five sections, sets the stage for action. The first section looks at policy issues of health/education collaboration, including strategies to clear the hurdles that are in its path; issues of funding; the appropriate role of state and federal governments; and specific issues involving programs aimed at infants, toddlers, preschool children, and school-age children. The next three sections provide examples of health/education collaboration at the state, local, and federal levels. The final section presents an annotated bibliography of useful sources for policymakers and providers concerned with health and education collaboration. Collaboration is not an end in itself but a means to an end; it is a process, rather than a product; and policymakers must provide incentives for collaboration, resources to fund collaborative initiatives, and support for front-line providers at all levels. (LL)