Characteristics of patients in nursing homes and the nursing homes in the United States are reviewed. Issues concerning the selection of right nursing home for the right patient are discussed in the context of measuring the needs of the patient, describing the environment of the home, and involving the patient and family in the selection process so that the best patient-environment mix can be obtained. The major issues after nursing home placement relate to quality and cost of care. The problems in measuring quality of care in the nursing home are addressed, and a goal-attainment model is proposed for both quality assessment and cost containment. Examining alternatives to nursing home care and encouraging research into diseases that lead to placement in nursing homes are seen as high priority goals in the field.