A four-bed Chronic Illness Transition Unit (CITU) for the care and developmental support of children who require long-term hospitalization is described The goal is to discharge patients to the home or the best alternative environment as expeditiously as possible The layout, staffing, and equipment, the importance of regional coordination, and components that increase viability of such a program and unit are discussed The costs of construction and the projected costs of service are reviewed It is hoped that others can use this experience to establish pediatric transition units, thereby improving care, developmental stimulation, family support, and placement of children with severe chronic illnesses.