In order to assess the value of a group program for long-stay elderly patients in an acute care hospital, eight patient outcomes were compared over a six month period within the group and on the nursing units. The activity program was designed to help patients maintain or improve their functional levels while waiting for placement. All patients improved or maintained their functional levels in the group, but these outcomes were not consistently transferred to the nursing units. More intensive geriatric rehabilitation and attention to the unit milieu appear to be needed to maintain gains and to improve functional abilities of long-stay elderly patients in the acute hospital setting.