Growth of the Program of All-Inclusive Care for the Elderly and the Role of Private Equity
2024

Growth of PACE Programs and Private Equity's Role

publication

Author Information

Author(s): Katherine Miller, Ravi Gupta, Daniel Polsky

Primary Institution: Johns Hopkins University

Hypothesis

The study aims to describe the growth of the Program of All-Inclusive Care for the Elderly (PACE) in the context of the 2016 policy change allowing for-profit investment.

Conclusion

The growth of for-profit PACE programs has outpaced non-profit programs, with a significant portion receiving private equity investments.

Supporting Evidence

  • Enrollment in for-profit PACE programs increased by an annual average of 13% from 2016 to 2022.
  • Non-profit PACE programs saw an average enrollment increase of 5.6% during the same period.
  • In 2022, 47% of enrollees in for-profit programs received care at facilities with private equity investments.
  • Despite the growth of for-profit programs, 78% of PACE enrollees received care from non-profit programs in 2022.

Takeaway

This study looks at how a program that helps older adults has grown since a new rule allowed for-profit companies to invest in it.

Methodology

The study used Refinitiv and Medicare Advantage contract and enrollment data to analyze enrollment trends.

Limitations

The study does not examine the effects of for-profit ownership on patient outcomes.

Participant Demographics

Adults aged 55 and older, primarily dual-eligible for Medicare and Medicaid.

Digital Object Identifier (DOI)

10.1093/geroni/igae098.3093

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