The California Department of Health Care Services (“DHCS”) announced via a Policy Letter that the state has paused the application process for Program of All-Inclusive Care for the Elderly (“PACE”) organizations for a minimum of two years.[1] Beginning November 20, DHCS will not accept applications to establish new PACE organizations or accept service-area expansion requests from existing programs. The letter makes clear that the pause is tied to DHCS’s oversight responsibilities under the Welfare & Institutions Code and reflects the agency’s need to manage growth and maintain the integrity of the program.[2]

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