The transition of adult day health care centers in California into the newly created Community Based Adult Services programs includes a proposal that all providers must become non-for-profit entities to be eligible to receive Medi-Cal payments.
The proposed new requirement that CBAS providers be not-for-profit to qualify for Medi-Cal funding goes back to the inception of the program in 1978 at which time the majority of the providers were non-profit. Not until the mid-1990’s, when the program mushroomed, did a majority of s providers become for-profit. Historical statistics indicate that prior to about 1996, 75% of ADHC centers in California were not-for-profit and 25% for-profit, whereas after about 1996, the reverse was true – approximately 75% of adult day health care centers were for-profit and 25% not-for-profit.Certainly exempting specialty and rural centers whose populations might otherwise not have access to the services currently provided by ADHCs is one method of attempting to insure that the frail elderly with acute needs who rely on and benefit from the services will continue to receive them under the CBAS model. Other strategic for-profit centers that may elect not to convert to a non-profit status might be targets for acquisition by not-for-profit centers seeking to expand their services.
Read the California Healthline Capitol Desk post by David Gorn, Monday, January 9, 2012: