Question: We are in the development phase of a PACE (Program of All-inclusive Care for the Elderly) program and will not open until spring, 2015. Even though most PACE programs break even once fully operational can we count expenses incurred during the long ramp up period to breaking even? The PACE program is part of our needs assessment priority areas and implementation strategies.
Recommendation: We recommend reporting start-up costs for establishing a PACE program as a subsidized service as long as there is an identified community health need for the program. For example, some organizations have been asked by legislators or government agencies to start a program. Unmet needs of persons dually eligible for Medicare and Medicaid being identified in the CHNA would be another indication of need. Once the program is operational, unreimbursed costs or shortfalls may also be reported as community benefit under the Subsidized Services category.