1. A. A PACE organization must have a fiscally sound operation, as demonstrated by:

   1. 1. total assets greater than total unsubordinated liabilities;
   2. 2. sufficient cash flow and adequate liquidity to meet obligations as they become due; and
   3. 3. a net operating surplus or a financial plan for solvency that is satisfactory to the Centers for Medicaid and Medicare Services (CMS) and the Department of Health.

2. B. A PACE organization shall operate under the control of an identifiable governing body such as a board of directors, which must include at least one community representative. The following advisory committees shall also be established to advise the board of directors:

   1. 1. Consumer Advisory Committee;
   2. 2. Ethics Committee;
   3. 3. Restraint Committee; and
   4. 4. any other committees as required by CMS and/or LDH.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with R.S. 36:254, Title XIX of the Social Security Act, and 42 CFR 460 et seq.

Historical Note

HISTORICAL NOTE: Promulgated by the Department of Health and Hospitals, Office of the Secretary, Bureau of Health Services Financing, LR 30:245 (February 2004), amended by the Department of Health, Bureau of Health Services Financing and the Office of Aging and Adult Services, LR 50:387 (March 2024).