PACE: A Case Study of Information-Driven Innovation and Care

Zawadski and Hansen discuss the Program of All-inclusive Care for the Elderly (PACE), an innovative and rapidly growing model of services for older adults needing long term, chronic care. Today there are 159 PACE programs operating in 32 states and the District of Columbia. These programs operate more than 300 PACE centers, serving more than 72,000 participants across the country National Pace Association. PACE is predicated on a simple idea--providing services based on what the individual needs, not on what is reimbursable. Like an HMO, PACE receives capitation payments instead of multiple service fees for the delivery of all needed services. Unlike an HMO, which focuses on risk management--spreading the cost of services for the few sick across the mostly healthy many--PACE focuses on service management. PACE optimizes the management and delivery of services needed by a group of people, all of whom need continuing care and support.