A bill to provide for demonstration programs for the placement, by hospitals and by certain other qualified agencies, of certain elderly or disabled long-term care patients with foster care families.

Authorizes the Secretary of Health, Education, and Welfare, in consultation with the Administration on Aging, to make grants to, and enter into contracts with, certain hospitals, senior citizen centers, State agencies dealing with senior citizens, or other qualified agencies to conduct demonstration programs for the placement with foster care families of specified elderly or disabled persons.

Establishes standards which such programs must meet to qualify for grants or contracts.

Directs the Secretary to provide, to the extent feasible, for the approval of two grants or contracts in each Department of Health, Education, and Welfare region, one in an urban area, and one in a nonurban area.

Limits the amount of a grant or contract to 90 percent of the costs of the program.

Sets forth certain recordkeeping requirements for such programs. Requires that such records be available to the Secretary and the Comptroller General for audit and examination.

Authorizes the Secretary to provide technical assistance to appropriate entities with respect to such programs.

Directs the Secretary to evaluate such programs and report to Congress by January 1, 1981.

Authorizes appropriations for such grants and contracts of $1,500,000 for each of fiscal years 1980 through 1982.