The Transition Care Program provided additional treatment and care options following hospitalisation for patients and their families. When compared with similar groups of frail older people discharged from hospital during the same time period, those who received Transition Care had fewer re-admissions to hospital and were less likely to move into permanent residential aged care. These outcomes are achieved at a comparatively high cost. The program was implemented within a health context where older people across Australia have widely variable access to rehabilitation and geriatric hospital beds. It did not appear that areas which were short of aged care services or sub-acute beds had been prioritised in the allocation of the first 2000 Transition Care places.