Approximately 25% of older home health patients with chronic diseases are readmitted to hospital within one month of discharge underscoring health system challenges. Depression is highly prevalent among older adults with chronic diseases. Delivering telehealth services may provide an effective approach to improving outcomes and reducing readmissions by monitoring physical and mental health symptoms, increasing communication with primary care, and delivering evidence-based depression care. This is the first study to report the results of a randomized trial of I-TEAM © (Integrated Telehealth Education and Activation of Mood), a telehealth nurse-delivered intervention model for chronic illness and co-morbid depression vs nurse-delivered in-home health care augmented with psychoeducation. The 3-month intervention included telemonitoring of biometrics, problem-solving treatment for depression, and communication with the primary care physician for antidepressants. The two groups were compared at baseline, 3, and 6-months post-baseline on depression, health status, problem solving, self-efficacy, and health utilization (number of readmissions, patient episodes of care, and ER visits). At 3 and 6 months post-baseline, depression scores decreased by 50% in the I-TEAM group as compared to controls. The I-TEAM group reported significant improvement in problem solving skills and self-efficacy in managing their medical condition compared to controls. The I-TEAM group had significantly lower ER visits ( P < .03) at 12-month post-baseline compared to usual care. Patients reported that telehealth services were feasible and satisfactory. After attending this activity, participants will be able to discuss the I-TEAM integrated health and mental health model and associated benefits with telehealth technology services.