Despite state laws and professional norms, administrators intervene in different ways in response to chemically dependent nurses. The purpose of this study was to examine how context and interpretation affect these interventions. Nurse administrators from 322 hospitals participated in the study. Regression analysis revealed a relationship between interpretation (threat or nonthreat) of chemically dependent nurses and the interventions. The higher the degree of threat perceived in relation to these nurses, the higher the tendency to terminate them (p<.01), and the lower the tendency to refer them to treatment (p<.05), reintegrate them (p<.01), and hire them (p<.01). Two context variables, professionalization and communication, were related to reintegration (p<.05). Understanding the relationship between context and interpretation on decision making will allow for progress toward improved management of the health care environment.