Oklahoma is moving forward with a $33 million federally funded expansion of its Program of All-Inclusive Care for the Elderly, launching a multi-year procurement effort that will finance new rural service hubs, facility renovations, mobile infrastructure and provider incentives under a blended Medicare-Medicaid payment model.
Administered by the Oklahoma Health Care Authority and backed by the Centers for Medicare and Medicaid Services’ Rural Health Transformation Program, the initiative calls for the establishment of up to six new PACE centers in rural and tribal areas that currently lack access to the program.
The funding package directs approximately $11 million toward facility renovation and retrofitting, $2.7 million for mobile outreach and transportation capacity, and more than $3 million to help participating providers meet federal compliance requirements, with additional site-level incentive payments tied to program launch and performance.
PACE is funded through a blended payment model that combines Medicare and Medicaid dollars into a fixed monthly payment per participant. That structure allows care teams to focus on prevention and coordination rather than billing for individual services.
PACE serves adults age 55 and older who need a high level of care but could continue living in their homes with coordinated support. Services include primary care, prescriptions, therapy, transportation and social services, all delivered through a single provider team. Care may be provided in a participant’s home, at a PACE center or through contracted providers.
State officials anticipate expanding PACE into rural areas is particularly important as Oklahoma’s population ages and access to health care remains limited in many counties. Rural residents often face long travel times to medical appointments and higher rates of hospitalization for preventable conditions.
PACE operates in multiple states nationwide, but availability has historically been concentrated in urban areas. Oklahoma’s officials see their program as unique, as their federal-state funded model targets underserved rural communities.
The rural PACE expansion is part of Oklahoma’s broader Rural Health Transformation effort, which received more than $220 million in federal funding to the state in its first year to support new care models, workforce development and infrastructure improvements in rural health systems.
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