Data from the Parent Health Supplement of the 1991 interview wave of the Pa
nel Studies of Income Dynamics were used to examine the changes in care arr
angements for elderly parents (N = 1,028). Following the onset of their dep
endency, more than elderly parents experienced at least one form of institu
tionalization (hospital or nursing home). A majority of those who remained
in the community also experienced changes in living/care arrangements, ofte
n moving. in with someone or having someone move in with them. The findings
confirm those of previous studies that health-related need factors and rac
e are significant determinants of institutionalization immediately followin
g the onset of dependency. But availability of caregivers and other enablin
g factors are also significant determinants of care settings used following
hospitalization.