It is widely recognised that there is a group of people who have health care needs, which, while not requiring the facilities of the acute hospital sector, do demand considerable support to regain a maximum level of health. A number of different initiatives have been explored to meet this diverse group's needs, yet there is little agreement about what is meant by intermediate (or transitional) care; the needs and size of the potential target group who may benefit; the objectives of the care alternative and the efficacy of the services. For this reason the King's Fund convened a half day seminar to discuss the premises of intermediate care and debate some of the issues. In this discussion paper, the central issues are presented, incorporating points raised by speakers and audience, crystallising the open-ended discussion into a focused review of intermediate care's challenges and potential.