For skilled nursing facilities, for-profit PACE expansion backed by venture capital is a real and growing competitive pressure on referral pipelines for long-stay and dual-eligible residents.
The PACE Managed Care Program: Its Purpose, Benefits, and Potential for Growth
Since PACE centers can avoid more expensive nursing home care, it generates savings of around $2,800 per participant for the federal and state governments, or $33,600 annually. Relative to the current 84,000 participants, this equates to $2.8 billion in savings. Not only are there budgetary savings for the government, there is growing evidence that patients participating in the PACE program experience better health outcomes including lower rates of hospitalization, readmission, and potentially avoidable hospitalization than similar populations.
— Pacific Research Institute, July, 2025
Expanding PACE Could Further Reduce Taxpayer Burden, Improve Care, Report Finds
The Program of All-Inclusive Care for the Elderly saves taxpayers more than $2.8 billion annually, according to a new issue brief from the Center for Medical Economics and Innovation at the Pacific Research Institute. The PACE model currently saves an average of $2,800 per participant per month, or $33,600 annually, according to the analysis, but those savings could be greater with some reforms, PRI said.
— McKnight’s Senior Living, August 7, 2025
✔ Comply with every payer's rules
✔ Equip your team with the Playbook
✔ Monitor rates and payer trends
