Elder Care Revolution: PACE Program Gains Momentum in Multiple States for Nursing Home Alternatives

Chattanooga, Tennessee – George Raines, a spirited senior in a University of Alabama ballcap, engaged in physical therapy exercises with therapist Brad Ellis at Ascension Living Alexian PACE in Chattanooga. This facility offers medical care and services to individuals over 55 who require nursing home-level care but can still reside at home with support. Most clients at PACE centers are dual-enrolled in Medicaid and Medicare, with some utilizing private insurance.

These PACE centers, operated by various healthcare organizations, have gained attention from lawmakers in states like Georgia, Illinois, and Ohio for their ability to enable individuals to stay at home, potentially at a lower cost than nursing home care. The centers rely on fixed monthly payments from Medicare, Medicaid, and in some cases, private payers for each client enrolled.

While the concept of PACE as an elder care option has been relatively overlooked, it has recently piqued the interest of both healthcare providers and states. With a growing number of companies and healthcare systems investing in PACE centers, the expansion has not been without its challenges. Despite some studies showing mixed results on the effectiveness of these centers, families are increasingly seeking alternatives to traditional nursing homes.

In response to the growing demand, several states have taken steps to expand PACE programs, recognizing the benefits of keeping older adults in their homes for as long as possible. Lawmakers in states like New Jersey, Illinois, and Ohio have passed legislation to enhance access to PACE programs, while others like Tennessee are considering introducing PACE statewide.

The bipartisan support for expanding PACE services is evident across various states, with legislators acknowledging the value of these programs in providing comprehensive care for older adults. Recognizing the evolving landscape of elder care, some for-profit companies have entered the PACE market, leading to investigations and sanctions in states like Colorado and California.

Despite these challenges, PACE continues to grow and evolve, with a focus on preventive medicine and support services to enhance the health and well-being of participants. As the demand for community-based care for seniors rises, PACE centers play a vital role in offering a holistic approach to supporting older adults in their desire to age in place. With ongoing efforts to improve operations and expand access, PACE programs are poised to become a cornerstone of elder care services nationwide.