The Community Nursing Organization (CNO) demonstration tests a capitated, nurse-managed system of care. The demonstration assesses the impact of providing a specified package of community-based services, in conjunction with case management, under a capitated payment methodology. A unique feature of the demonstration is the use of nurse case managers to coordinate care and to provide a more flexible array of services, such as prevention and health promotion, that are not normally covered by Medicare but which become possible under a capitated system of payment. The CNOs provide the treatment groups at four demonstration sites with a package of community-based services plus case management (not a Medicare benefit) under the capitation payment methodology. All other Medicare covered services are paid for under the standard Medicare fee-for-service payment methodology.