[Federal Register Volume 69, Number 227 (Friday, November 26, 2004)]
[Notices]
[Page 68931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-25980]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

[CMS-5011-WN]


Medicare and Medicaid Programs; Notice of Withdrawal of the 
Solicitation of Proposals for the Private, for-Profit Demonstration 
Project for the Program of All-Inclusive Care for the Elderly (PACE)

AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.

ACTION: Withdrawal notice.

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SUMMARY: This document withdraws the ``Notice for the Solicitation of 
Proposals for the Private, For-Profit Demonstration Project for the 
Program of All-Inclusive Care for the Elderly (PACE)'' published in the 
Federal Register on August 10, 2001. That notice solicited proposals 
from private, for-profit organizations for a fully captitated joint 
Medicare and Medicaid demonstration. The goal of the solicitation 
notice was to determine whether the risk-based long-term care model 
employed by the nonprofit PACE could be replicated successfully by for-
profit organization.

EFFECTIVE DATE: March 28, 2005.

FOR FURTHER INFORMATION CONTACT: Michael Henesch, (410) 786-6685.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 4804(a)(2) of the Balance Budget Act of 1997 (BBA) requires 
us to conduct a study to compare the costs, quality, and access to 
services provided by for-profit entities to those of nonprofit Program 
of All-Inclusive Care for the Elderly providers (PACE). Section 
4801(h)(2)(A) of the BBA states that the terms and conditions for the 
for-profit PACE must be the same as those for PACE providers that are 
nonprofit, private organizations except that only 10 waivers may be 
granted.
    On August 10, 2001, we published a notice in the Federal Register 
(66 FR 42229). The notice solicited proposals from for-profit entities 
to demonstrate that they could successfully provide comprehensive 
coordinated care for the frail elderly under a prepaid fully capitated 
payment system. The solicitation notice specified that we would 
consider proposals only from for-profit organizations and the 
demonstration would operate for 3 years.

II. Provisions of the Notice

    This notice withdraws the solicitation notice that we published in 
the Federal Register on August 10, 2001. As specified in the 
solicitation notice, we would consider proposals only from for-profit 
organizations and the demonstration would operate for 3 years. Before 
submitting a proposal, all interested applicants were to submit letters 
of intent. We indicated that proposals would be accepted until 10 sites 
were awarded. Following the selection of 10 sites, organizations that 
had submitted letters of intent, but had not yet submitted proposals, 
would be notified that the limit of approved sites had been reached.
    Since the publication of the solicitation notice, we received only 
ten letters of intent. Of these 10 letters of intent, 8 were received 
in 2001 and early 2002, 1 was received in February 2003, and 1 was 
received in August 2003. Although we have provided information to 
numerous organizations including having discussions with the 
organizations that have submitted letters of intent, we have not 
received any proposals. We have also contacted the two most recent 
organizations that have submitted letters of intent to offer technical 
assistance and have ascertained that only one organization has 
considered submitting a proposal. In addition, we have been informed by 
the National PACE Association, that it has consulted with organizations 
that have not submitted letters of interest.
    Although the demonstration is mandated by the BBA, since CMS has 
not received any proposals that it could fund under the authority of 
the BBA, we are withdrawing our solicitation.
    The need to keep abreast of regulatory provisions of the nonprofit 
PACE requires us to attend all PACE meetings, since the for-profit PACE 
demonstration would mirror nonprofit PACE policy. In the nearly 3 years 
since the implementation of the solicitation notice, the effort to 
maintain this level of activity has been extensive. With the enactment 
of the Medicare Prescription Drug, Improvement, and Modernization Act 
of 2003 (Pub. L. 108-173), we believe that our resources can better be 
utilized in addressing other workloads, including various studies, and 
other efforts related to the start-up of new programs and benefits. 
Furthermore, we believe it is unlikely that we will receive a proposal 
for a for-profit PACE demonstration. Therefore, we are withdrawing the 
August 10, 2001, solicitation notice.
    This notice is intended to withdraw the solicitation by March 28, 
2005. This withdrawal notice provides an opportunity for organizations 
that remain interested to submit proposals until that time.

III. Collection of Information Requirements

    This document does not impose information collection and 
recordkeeping requirements. Consequently, it need not be reviewed by 
the Office of Management and Budget under the authority of the 
Paperwork Reduction Act of 1995.

    Authority: Section 1894(h) and 1934(h) of the Social Security 
Act (42 U.S.C. 1395)

(Catalog of Federal Domestic Assistance Program No. 93.778, Medical 
Assistance Program; No. 93.773 Medicare--Hospital Insurance Program; 
and No. 93.774, Medicare--Supplementary Medical Insurance Program)

    Dated: September 10, 2004.
Mark B. McClellan,
Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. 04-25980 Filed 11-24-04; 8:45 am]
BILLING CODE 4120-01-P