Kaiser Permanente, a leading integrated health system, has teamed up with investment firms Town Hall Ventures and New Enterprise Associates to launch Habitat Health, a Program of All-inclusive Care for the Elderly (PACE) initiative. Announced in March 2024, Habitat Health aims to provide comprehensive care and support to low-income older adults in their homes, starting in Sacramento and Los Angeles in 2025.
“Our dedication to helping improve the health of our communities and members includes ensuring that people covered by Medicaid and Medicare can count on receiving the care and coordination that Kaiser Permanente delivers to our members,” said Bechara Choucair, M.D., chief health officer at Kaiser Permanente.
“By combining our expertise in integrated care with Town Hall Ventures’ experience launching businesses that support underserved communities, Habitat Health will help ensure that people who need the most care have access to high-quality, equitable medical care and services as they continue to age well in the communities that have cared for and supported them,” Choucair said.
Habitat Health leverages the PACE model, a Medicare and Medicaid-funded program that provides a comprehensive range of medical and social services to enrollees. An interdisciplinary care team determines the necessary support to maintain each participant’s health, which can include primary care, transportation, meals, and physical therapy. This holistic approach aims to keep seniors healthy and living independently in their familiar communities, a stark contrast to traditional nursing home settings.
According to the National PACE Association, approximately 72,000 adults aged 55 and over currently participate in PACE programs across the United States. The average participant is 76 years old with multiple complex medical conditions, yet a remarkable 95% continue to live in their communities thanks to PACE support. Notably, 90% of PACE participants are dually eligible for both Medicare and Medicaid.
Habitat Health will act as the single payer for all participants’ Medicare and Medicaid services. This joint venture strategically combines Kaiser Permanente’s expertise in integrated care delivery with Town Hall Ventures’ proven track record of building successful healthcare companies focused on underserved populations. Since its inception in 2018, Town Hall Ventures has supported or helped establish 35 such companies, including Cityblock Health, Curana Health, Equality Health, Landmark Health, Signify Health, Suvida Health, Strive Health, Thyme Care, Unite Us, and VillageMD.
“We have an extraordinary challenge in this country. The number of people age 85 and older in our country will double by 2040. We need a better answer for the millions of older adults that is more humane, compassionate, scalable and affordable for the nation,” explained Andy Slavitt, general partner at Town Hall Ventures in the announcement. “We share Kaiser Permanente’s commitment to finding innovative ways to improve community health, especially for underserved populations who need it most.”
Habitat Health’s arrival comes on the heels of MyPlace Health, another PACE organization, opening its first Los Angeles center in February 2024. Launched in 2022, MyPlace Health also seeks partners as they expand into a second southern Los Angeles County market in 2025. These developments highlight the growing focus on PACE programs as a viable alternative for providing high-quality, community-based care to our aging population.
