Traditionally, patients suffering from dementia are treated in psychiatric wards. In many geriatric patients, confusion/dementia is one of several problems prohibiting an early return to the previous way of living. To provide the best treatment, one of our geriatric wards was used for these patients. Based on our experiences from the first 58 patients discharged during the period 09.11.89-31.01.91, it was possible to create and secure a stable environment, with suitable activities for the satisfaction of the patients, their families and the staff. A structured procedure, including rating scales, was a great help in disclosing the patients' problems. One quarter of the patients were not demented, but temporarily confused due to other reasons. One third of the demented patients had no public assistance. It was necessary to discharge 60% of the demented and only 10% of the non-demented patients to nursing homes. Sheltered home-like living could be an alternative to the expensive nursing homes.