Town Hall Ventures and Kaiser Permanente Launch Habitat Health: Creating an Independent Future for Aging Americans

Overcoming the Challenges of an Aging Population.

Who will care for you and your loved ones as you age? Within a decade, older adults are expected to outnumber children under 18 for the first time¹, and for too many of the more than one in three older adults who require an institutional-level of care as they age², the only option may be moving out of their homes into nursing homes. Although nearly eight in ten Americans would prefer to remain in their homes as they age³, many are institutionalized, particularly those with low incomes. We need better answers.

That is why Town Hall Ventures was founded back in 2018 — to drive access to high-quality care for populations for whom the health care ecosystem is not working. And that is why today we are announcing that we are teaming up with Kaiser Permanente to launch Habitat Health, to provide a better and more complete answer — one where older adults can live at home, and one where they can be cared for and socialize at centers in their community, with access to the highest quality care, alongside Medicare and Medicaid coverage.

Launching Habitat Health.

The backbone of caring is trust — trust Kaiser Permanente has built up over decades from caring for people in a holistic way in their communities. 12.5 million people around the country receive fully integrated, high quality, personalized care today from Kaiser Permanente. That is why both Kaiser Permanente members and other community members will soon be able to access Habitat Health local centers, which will be dedicated to providing fully integrated care, social services, and Medicare and Medicaid coverage to older adults with low incomes as they age. Habitat Health, a new company backed by Kaiser Permanente, Town Hall Ventures, and New Enterprise Associates, will work to transform the way care is provided to older adults starting first in Kaiser Permanente’s communities, and soon in partnership with additional like-minded care and coverage providers throughout the country.

With Habitat Health, older adults will be able to live safely at home and receive the integrated medical and personal care they need through a dedicated care team, while having access to a purpose-built community center where they can both be cared for and socialize. The aim is to reduce the need for costly and inconvenient emergency care and to allow doctors and care teams to work in partnership with patients and their loved ones.

PACE: A Proven Model of Care.

Habitat Health’s approach to care is taken from a proven model that was first pioneered in the 1970s, which provided community-based and holistic long term care services to older adults living at home⁴. That model is called the Program of All-Inclusive Care for the Elderly (PACE), and was designed to serve adults aged 55+ who need its care the most. The average PACE participant is 77 years old and has 5.8 chronic conditions⁵. Nearly half have been diagnosed with dementia⁶, and a third require assistance with 5–6 activities of daily living⁷ (including eating, dressing, and using the restroom).

The proven results are what is most exciting. Over time, it has been shown that those who have access to its care are less likely to be hospitalized, visit the emergency room, or be institutionalized relative to Medicare Advantage beneficiaries (after controlling for demographics and disease burden)⁸. Perhaps most telling of all is that over 97% of family caregivers would recommend PACE⁹.

A National Model with Experienced Partners.

Fixing this challenge for older adults across the nation requires a long-term, committed effort. This is why Kaiser Permanente and Town Hall Ventures teamed up in 2023 to launch Habitat Health. The company plans to begin serving older adults in 2025 in Sacramento, CA and Los Angeles, CA, communities where Kaiser Permanente has a deep history and where there are thousands of older adults who could benefit from Habitat Health’s care. Late last year, New Enterprise Associates became a partner in the venture and provided additional capital. Habitat Health will add additional local community partners beyond Kaiser Permanente who have a similar market presence and reputation. Watch for further announcements as the team gets up and running.

Over time, we believe Habitat Health can provide a blueprint for a better way to care for people and revolutionize how we care for older adults on low incomes in the most humane and sustainable way.

Bibliography.

1 U.S. Census Bureau. “2020 Census Will Help Policymakers Prepare for the Incoming Wave of Aging Boomers.” Census.gov, February 25, 2022. https://www.census.gov/library/stories/2019/12/by-2030-all-baby-boomers-will-be-age-65-or-older.html.

2 “How Much Care Will You Need? | ACL Administration for Community Living,” n.d. https://acl.gov/ltc/basic-needs/how-much-care-will-you-need#

3 Davis, Michelle R. “​​77 Percent of Older Adults Want to Remain in Their Homes as They Age​​.” AARP, November 1, 2022. https://www.aarp.org/home-family/your-home/info-2021/home-and-community-preferences-survey.html.

4 Default. “PACE History,” n.d. https://www.npaonline.org/starting-expanding-a-pace-program/understanding-the-pace-model-of-care/pace-history.

5 “Improving Access to and Enrollment in Programs of AllInclusive Care for the Elderly (PACE).” Bipartisan Policy Center, October 2022. Accessed March 19, 2024. https://bipartisanpolicy.org/download/?file=/wp-content/uploads/2022/10/BPC_PACE_Report_Final.pdf.

6 Long-Term Services and Supports State Scorecard. “How The PACE Model Integrates Medical Care With Long-Term Services and Supports,” n.d. https://ltsschoices.aarp.org/resources-and-practices/pace-model-integrates-medical-care-and-ltss#:~:text=Most%20PACE%20participants%20are%20age,(46%20percent)%20have%20dementia.

7 “Improving Access to and Enrollment in Programs of AllInclusive Care for the Elderly (PACE).” Bipartisan Policy Center, October 2022. Accessed March 19, 2024. https://bipartisanpolicy.org/download/?file=/wp-content/uploads/2022/10/BPC_PACE_Report_Final.pdf.

8 Feng, Zhanlian, Joyce Wang, Angela Gadaska, Molly Knowles, Susan Haber, Melvin J. Ingber, Valentina Grouverman, and RTI International. “COMPARING OUTCOMES FOR DUAL ELIGIBLE BENEFICIARIES IN INTEGRATED CARE: Final Report.” Office of Behavioral Health, Disability, and Aging Policy. Office of the Assistant Secretary for Planning and Evaluation, U.S. Department of Health and Human Services, 2021. https://aspe.hhs.gov/sites/default/files/documents/9739cab65ad0221a66ebe45463d10d37/dual-eligible-beneficiaries-integrated-care.pdf.

9 Default. “Home,” n.d. https://www.npaonline.org/.