This study examined aggression as a predictor of nursing-home placement, injuries, use of restraints, and use of health services in community-dwelling patients with newly diagnosed dementia. Participants were identified from 2001-2004 Veterans Administration databases; all had a new diagnosis of dementia and no aggression. Patients and caregivers were evaluated for aggression, using the Cohen-Mansfield Agitation Inventory-aggression subscale, and other outcomes for 2 years, with outcome rates compared between patients who did or did not develop aggression and between pre- and postaggressive periods. Of 215 patients, 88 became aggressive, associated with significantly increased use of psychotropic medication (p< or =0.04), injuries (p< or =0.0001), and nursing-home placement (p< or =0.004).