On August 21st, the New York Times published an article on the PACE program for senior care.
Up to now, PACE programs, which are intended to keep seniors living in their homes longer, as well as to cut down on the cost of nursing homes for the government, were run solely by non-profit operators. But now senior living, for-profit companies are coming into the area quickly. The programs are based on Britain’s Day Hospitals program, and involve running day care centers which take care of the clients’ health and social needs.
Medicare and Medicaid pay on average approximately $77,000 per person per year. Unlike nursing home costs, that payment includes hospitalization costs, thereby incentivizing operators to pursue preventive medical care to prevent loss incurred by declining health problems.
While only around 40,000 people were in the PACE program in the U.S. as of last January, it is anticipated that with the Baby Boomers’ expressed desire to age at home, the number of people wanting admission to PACE will explode in coming years. InnovAge is betting on it, and has already opened eight vanguard centers the past year, with more to come.
Time to rethink “assisted living.”