This randomized, controlled trial evaluates the cost-benefit of a case management project for older persons in HongKong. Case managers provided integrated care to participants in an intervention group while participants in a control group received conventional care only. Minimum Data Set–Home Care was used to assess health conditions, and hospital admissions were used as the basis to calculate health care costs. After the intervention, hospital admissions were reduced by 36.8% in the intervention group (p = .01) and 20.4% in the control group. The total number of acute hospital bed-days decreased by 53.1% in the intervention group (p < .05), compared to 4.4% in the control group. Compared with the control group, U.S.$170,448 was saved in acute hospital care and community health services in the intervention group. Well-planned case management interventions reduced hospital admissions and the length of stay in hospitals with corresponding savings in total health care costs.