We establish the potential for outcomes evaluation of a long-term care popu
lation-based dataset. Data come from the Health Care Financing Administrati
on's case-mix and quality demonstration project including all Medicare/ Med
icaid certified homes of five U.S. states during 1992-1994. Using the Minim
um Data Set, we identified nearly 70,000 residents over 65 years of age wit
h congestive heart failure. We provide a preliminary analysis of pharmacoth
erapy of congestive heart failure and its effects on decline in physical fu
nctioning. Functional outcome, expressed as the rate of ADL decline, was im
proved for patients on combination therapy relative to those on digoxin or
ACE-inhibitors alone. The availability of a population-based data set provi
des a means of evaluating current policies and practices.