PACE Program Overview
What is PACE and Why It Matters
The Program of All-Inclusive Care for the Elderly (PACE) represents a revolutionary approach to senior healthcare, providing comprehensive medical, social, and in-home services for Medicare and Medicaid eligible seniors. This innovative care model focuses on keeping elderly Americans healthy, independent, and in their communities rather than in institutional care settings.
PACE serves as a critical alternative for seniors who would otherwise require nursing home care, offering a holistic approach that addresses not just medical needs but also social determinants of health. The program’s comprehensive nature includes everything from primary care and specialist services to transportation, meals, and social activities.
Historical Context and Development
While the PACE model traces its roots back to the 1970s, it was formally established through federal legislation in 1997. Today, the program operates across 33 states with 352 centers nationwide, serving approximately 80,000 people. Despite its proven effectiveness in improving outcomes and reducing costs, PACE enrollment remains relatively small compared to the broader Medicare population.
SCAN Group’s Los Angeles Expansion
New Compton Facility Details
SCAN Group has significantly expanded its presence in Southern California with the opening of its second PACE center, a state-of-the-art 33,000-square-foot facility in Compton. This strategic location addresses critical healthcare access gaps in South Los Angeles, an area that has historically been underserved by comprehensive senior care programs.
The new facility complements myPlace Health’s first PACE site, which opened near downtown Los Angeles in 2024. Together, these two centers currently serve 136 members, with enrollment projected to exceed 150 in the coming months as awareness and demand for the program grow.
Services and Eligibility
The Compton center provides low-cost or no-cost medical, social, and in-home services specifically designed for seniors who qualify for both Medicare and Medicaid. This dual eligibility requirement ensures that the program serves the most vulnerable elderly population, many of whom face significant financial barriers to accessing quality healthcare.
Services offered include comprehensive medical care, behavioral health support, rehabilitation services, nutritional counseling, transportation assistance, and social activities designed to combat isolation and promote community engagement among participants.
myPlace Health Partnership
Strategic Acquisition and Growth
myPlace Health, originally founded by SCAN in 2021, represents a focused effort to expand PACE services in California. The organization was fully acquired by SCAN this year following an initial partnership with Commonwealth Care Alliance, demonstrating SCAN’s commitment to the PACE model and its potential for transforming senior care.
According to Sachin Jain, MD, president and CEO of SCAN Group, “Our mission at SCAN is to keep seniors healthy and independent. At the top of the pyramid for models that actually do that is PACE. It is probably the purest instantiation of our mission because this is a group of people who otherwise would be in nursing homes.”
Mission-Driven Approach
The acquisition reflects SCAN’s broader strategy of investing in care models that align with its mission of supporting senior independence and health outcomes. Dr. Jain emphasizes that PACE serves individuals who “might die prematurely because they don’t have the right access to services,” highlighting the life-saving potential of comprehensive, coordinated care.
Addressing Healthcare Access Gaps
Community Impact in Underserved Areas
Robbie Pottharst, CEO of myPlace, explains that the Compton expansion directly responds to high demand for the PACE model in regions with longstanding healthcare access challenges. South Los Angeles has historically faced significant disparities in healthcare quality and accessibility, making the new PACE center a crucial resource for the community.
The facility’s location was strategically chosen to serve populations that have been traditionally underserved by comprehensive healthcare programs, ensuring that vulnerable seniors have access to the integrated care they need to remain healthy and independent.
Quality and Accountability
As Pottharst notes, “As a PACE operator, that comes with immense responsibility, because we get all of our payments from Medicare and Medicaid. The outcomes, the quality and the experience we produce has to be real.” This accountability structure ensures that PACE providers must demonstrate tangible value for both participants and taxpayers.
Regulatory Challenges and Barriers
Implementation Hurdles
Despite widespread recognition of PACE’s effectiveness, several barriers continue to limit program expansion. State contracting hurdles, substantial capital requirements, and complex regulatory frameworks present significant challenges for organizations interested in launching PACE programs.
These regulatory complexities often discourage potential operators who might otherwise be interested in pursuing PACE expansion. The day-one capital requirements alone can be prohibitive for many mission-driven organizations that would be ideal PACE operators.
Need for Federal Reform
Dr. Jain advocates for federal intervention to address these barriers: “If we could, we’d be launching 100 PACE sites around the country right now. We’re looking for CMS to provide relief around day-one capital requirements. That would allow more organizations to pursue PACE that have otherwise shelved their proposals.”
Federal Support and Future Outlook
Growing Political Momentum
Federal momentum for PACE expansion appears to be building, with CMS Administrator Dr. Mehmet Oz recently visiting a PACE center in San Francisco and describing the model as “a different way of looking at how you can age in America.” This high-level attention suggests potential policy changes that could facilitate program growth.
Such federal support could be crucial for addressing the regulatory and financial barriers that currently limit PACE expansion, potentially opening doors for more organizations to enter the market and serve additional communities.
Scalability and Impact Potential
The relatively small size of current PACE enrollment—around 80,000 people nationwide—represents both a challenge and an opportunity. While the numbers indicate limited current reach, they also suggest enormous potential for growth if barriers can be addressed effectively.
Partnership-Driven Growth Strategy
Collaborative Expansion Model
myPlace Health is pursuing a partnership-driven approach to growth, creating what Pottharst describes as “a consortium of like-minded, mission-driven organizations that want to band together in PACE.” This collaborative strategy could help overcome individual organizational barriers while maintaining the mission-driven focus essential to PACE’s success.
The approach recognizes that many organizations serving PACE-eligible populations already understand the model’s value but need support navigating the complexities of implementation and operation.
Creating a Network Effect
By building partnerships with existing mission-driven organizations, myPlace aims to create a network effect that can accelerate PACE adoption while maintaining quality standards. This strategy could prove particularly effective in addressing the diverse needs of different communities while sharing resources and expertise across multiple sites.
The success of SCAN Group’s PACE expansion in Los Angeles demonstrates the model’s potential for transforming senior care delivery, providing a blueprint for other organizations interested in pursuing similar initiatives while advocating for the regulatory reforms needed to make such expansion more feasible nationwide.
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