Public/Private Elder Care Partnerships: Balancing Benefit and Risk

GAO discussed the public benefit and risk when corporations buy elder care services from area agencies on aging for company employees that care for elderly persons. GAO noted that: (1) private partnerships offer the benefit of the infusion of private funds into an oversubscribed system of public services and a risk of possible neglect of activities to achieve the public mission under the Older Americans Act; (2) in 1990, the Administration on Aging asked state agencies to develop policies that would encourage corporate elder care among area agencies on aging while preserving the public mission; (3) all states developed policies on corporate elder care, although 8 policies are not final; (4) 45 states and the District of Columbia permit agencies to enter into corporate elder care contracts and most encourage agencies to pursue these arrangements, but the 5 remaining states have policies stating they will not enter into elder care contracts with corporations; (5) in 41 states and the District of Columbia, state elder care policies fall short of protecting the public-mission responsibilities of area agencies on aging; and (6) state policies often do not address the need to target services to individuals with the greatest economic or social need.