Research on the effects of the Medicare Prospective Payment System utilizing DRGs on community service providers indicates that a heavier-care clientele is changing the nature of the community-based long-term care system. This article reports on the impact of DRGs on one provider type, adult day care centers, and the resulting shift toward post-acute care to meet the demands of this new heavier-care clientele. The 39 adult day care centers reported on are part of a larger sample of providers studied over three years in 12 communities within five states.