CMS Pub. 100-11, ch. 2, § 20

A PACE organization must be, or be a distinct part of, one of the following:

• An entity of city, county, State, or Tribal government;

• A private not-for-profit entity organized for charitable purposes under Section

501(c)(3) of the Internal Revenue Code of 1986. The entity may be a

corporation, a subsidiary of a larger corporation, or a department of a

corporation;

• A for-profit entity, subject to a demonstration waiver. CMS notes that

Sections 1894(a)(3)(B) and 1934(a)(3)(B) of the Act allow private, for-profit

entities to participate in PACE, subject to a demonstration waiver described in

Section 1894(h) and 1934(h) of the Act. (For-profit entities wishing to

participate in PACE applied for a demonstration waiver under Section 1894(h)

and 1934(h) of the Act. CMS issued a Federal Register notice on July 24,

2009 announcing July 26, 2010 as the closing date for submission of

proposals for the for-profit demonstration project for PACE). While

participating in the PACE for-profit demonstration, they must meet all

requirements set forth in PACE regulations. CMS explicitly stated they would

expect the PACE organization to retain all key administrative functions

including marketing and enrollment, quality assurance and program

improvement, and contracting for institutional providers and other key staff.

A potential PACE organization must supply evidence that core staff have been chosen

and accepted specific key positions in their official application submission.

In the event of a change of ownership, CMS would apply the general provisions

described in 42 CFR § 422.550 [Effect of change of ownership or leasing of facilities

during term of contract.]

[42 CFR §§ 460.12, 460.32, 460.60(a); 71 FR 71263 (Dec. 8, 2006)]