Changes now taking place in the structure of health care delivery in t
he United States from regulatory models controlled by physicians to co
mpetitive models driven by traditional market forces of cost and quali
ty are beginning to open opportunities for innovative nursing practice
models. This article reports on the cost-effectiveness of a community
nursing center for persons living with HIV/AIDS. The potential cost i
mpact of the nursing center is significant because of the nurses' abil
ity to forestall hospital admissions and readmissions, decrease prolon
ged lengths of stay, provide medically supportive outpatient treatment
s, care for clients at a low cost per client per year, attract profess
ional and nonprofessional volunteer services and donations, and increa
se job satisfaction, thus reducing costly nurse turnover. The 1991 to
1992 costs of HIV/AIDS health care in the United States were used to e
stimate conservatively that the center has saved more than $700,000 in
1991 and over $1 million in 1992 in hospital charges for HIV/AIDS car
e. A rationale for the cost savings estimates is supplied by results o
f quantitative and qualitative evaluation research projects conducted
at the center. Finally, implications of this analysis for future direc
tions in nursing practice and education are discussed.