OBJECTIVE: To assess the utilization and costs of medical services before and after implementation of an interdisciplinary heart failure (HF) intervention in a Veterans Administration (VA) setting. METHODS: Retrospective electronic chart reviews were conducted to determine utilization and costs of medical treatment for 220 patients enrolled in a HF program at a VA medical center. Patients enrolled in the program must have been classified as NYHA class III or IV (or AHA/ACC Stage C or D), and have had at least two hospitalizations for heart failure within a one year period prior to enrollment. A comprehensive interdisciplinary management program, including physicians, nurse practitioners, case mangers, and pharmacists, was implemented to initiate, manage, and monitor drug therapy regimens and patient outcomes. Utilization was measured by readmission to the hospital. Only direct medical costs were included in the analysis given that an institutional VA perspective was used. Total utilization and costs for all cause readmissions for HF patients were calculated for pre and post enrollment periods. RESULTS: In a cohort of 220 Stage III or IV HF patients, the average all-cause readmission rate per person per year declined from 3.2 prior to the implementation of the HF program to 1.2 for all cause readmission post enrollment. The decrease in readmission rates resulted in an estimated annual savings per patient of $11,448. CONCLUSIONS: Enrollment of Stage III and IV HF patients in an interdisciplinary intervention program decreased the average number of readmissions per person per year from 3.2 to 1.2 (62.5% reduction). Savings from this intervention are estimated to be over $11,000 per HF patient per year. Further research is being conducted to ascertain the specific effects of this program, its contribution to operational efficiency, its impact on quality of care, and its generalizability to other VA hospitals.