Medically complex children require an increasingly large portion of inpatient and emergency department care in children's hospitals and account for a large portion of the overall pediatric health care costs. The initiation of a medical home program for these children, using multidisciplinary teams and improved coordination of care, resulted in a significant reduction in costs of care. There was a significant decrease in the likelihood of admission and a shorter length of stay for those who were admitted after the initiation of the new program. This resulted in an annual savings of $1766 per patient per month for children enrolled in the program. Future research is needed to determine whether the coordinated and comprehensive care resulted in better patient quality of life and health status as well as improvement in the quality of life, mental health, satisfaction with care, and general well-being of their care providers.