Community Based Services Grow the fastest

In 2011, skilled nursing facilities accounted for the largest share of elder care services. However, home and community based services ( adult day care and home health) are projected to acheive the fastest growth. Advances will be driven by continued state and federal efforts to shift Medicaid payments awaay from skilled nursing to more cost effective community based services. Additonally, many older adults prefer to age in place, remaining in their homes as long as possible.

Grants for Starting an Adult Day Care Center

Social Services Block Grant

The Social Services Block Grant is a federal program that awards funds to states for the provision of social services. Although states determine which agencies and projects can receive the funds, the United States Department of Health and Human Services reports that one type of program supported by these grants is adult daycare. Furthermore, the grant is intended to help individuals become independent, self-sufficient and to reduce neglect. Organizations starting an adult daycare center can learn more about opportunities through their states by contacting their state departments of social services.

Administration on Aging Grants

Because many people consuming adult daycare centers are the elderly, the Administration on Aging offers a number of grants that can be used to fund adult daycare centers where the elderly reside. For example, in 2011, the AOA made funds available to State Units on Aging for the creation of a statewide services network capable of caring for dementia patients. The administration also offers grants to nonprofit, educational and academic organizations for research and services in the area of respite care and caregiver support, nutrition, research and the prevention of elder abuse. Organizations and states wanting to create adult daycare facilities may be eligible for some of these funds, depending on what kind of residents they will serve and what types of services they will provide.

Robert Wood Johnson Foundation Grants

The Robert Wood Johnson Foundation offers grant funds to public universities, nonprofit organizations and other public agencies for the improvement of health-care services, including adult daycare. Although the foundation prefers to grant programs that can be easily assessed, such as research and training initiatives, organizations that want to start or reorganize adult daycare facilities may be eligible for grants to fund a part of their projects, such as staff training or innovative programs.

Department of Veterans Affairs Grants

Since many veterans are in need of adult day services, the U.S. Department of Veterans Affairs offers project grants for the creation of community programs for eligible veterans. Adult daycare centers that will offer services to veterans and agree to receive per diem compensation from the VA may be eligible, as long as they offer all of the medical services required by the federal agency. Organizations interested in creating such a program should visit the VA website for more information.

Medicaid to Remain Leading Payment Source

According to The Elder Care Services News letter by Freedonia Industries, Mediciad, which pays for adult day care, will continue to be the leading paument source for the elder care services industry despite efforts at the state and federal levels to curb expenditures. Medicare payments will experience the fastes annual growth, though furture legislative changes and fluctuating reimbursement rates have the potential to affect that outlook. Out-of-pocket expenditures continue to be important in the continuing care and assisted living industries, as many of the costs of these services are not covered by Medicare or Medicaid. Private insurance coverage will rise as the aged population grows and individuals who doubt the government's ability to provide future care purchase long term care insurance. Other payment sources include chairitable donations, private grants, and other government resources such as US veterans'Adminsitration.