Bruce W. McCollum

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Why and How Adult Day Care Associations Must Evolve to Stay Viable

Adult day care associations are confronting a new reality: in a polarized political climate, grant programs are tightening, priorities are shifting, and discretionary funding for social supports is increasingly contested. Associations that have long relied on grants to underwrite advocacy and education may face declining revenue streams. Yet this moment also presents a powerful opportunity to reposition for long‑term relevance and financial strength.

Anchor the mission in medical impact.  Adult day services are uniquely positioned to improve clinical outcomes—reducing hospital readmissions, mitigating caregiver burnout, supporting medication adherence, and stabilizing dementia behaviors. Associations should pivot their programming and value proposition toward clinical integration: standardized care pathways, nurse-led protocols, and evidence-backed interventions that measurably affect cost and quality. When associations speak the language of outcomes—falls reduction, ED diversion, pressure-injury prevention—they become essential partners to health systems, managed care organizations, and state agencies that are accountable for results.

Build a market-research engine.  Operators need data, not anecdotes. Associations can lead ongoing market studies that quantify local demand, payer mix trends, pricing benchmarks, caregiver preferences, and referral sources—from primary care to memory clinics to veteran services.

Quarterly dashboards and annual white papers elevate adult day services from “nice-to-have” to “must-have” community infrastructure. This research becomes a revenue stream (subscriptions, sponsorships) and a magnet for providers who want actionable intelligence, not generic training.

Pursue statutory authority to steward Medicaid waiver dollars.  Associations should organize coalitions to pass laws enabling them—or designated consortia they lead—to manage or administer Medicaid waiver funds specifically for adult day services. With proper guardrails and accountability, this creates a direct conduit that aligns funding with evidence-based service delivery. It also allows associations to implement standardized quality requirements, expand access in underserved areas, and streamline provider onboarding. Success here requires boards with medically credentialed personnel—nurses, geriatricians, therapists—who can design utilization criteria, quality audits, and outcomes reporting that withstand payer scrutiny.

Co-develop education with universities.  University-sponsored certificate programs in adult day care operations, dementia care, rehabilitation supports, quality improvement, and population health can be led by associations with academic partners. Joint curricula validate competencies, attract continuing education funding, and create a pipeline of skilled staff. Practicum placements at member centers close the loop between theory and practice. When associations convene this ecosystem, they become a talent engine for the entire sector.

Expand relevance to grow membership.  A small percentage of operators currently join associations—a symptom of unclear value. That can change with a sharper offering:

  • Contracting support: templates, compliance toolkits, and payer negotiations.
  • Outcome registries: members submit standardized measures; associations return benchmarking and improvement plans.
  • Referral acceleration: partnerships with health systems, Area Agencies on Aging, and veteran services, supported by shared intake protocols.
  • Public affairs strategy: rapid-response briefs, model legislation, and coordinated testimony that places adult day care at the center of aging policy.
  • Innovation collaboratives: group purchasing, technology pilots (EHRs tailored to adult day), remote monitoring, and transportation optimization.

The path forward is not to chase shrinking grants but to lead with clinical rigor, data fluency, statutory influence, and workforce development. Adult day care associations that embrace these roles will not only stabilize their finances—they will redefine the category as a core component of value-based aging services.



Another Blog Post by Direct Care Training & Resource Center, Inc. Photos used are designed to complement the written content. They do not imply a relationship with or endorsement by any individual nor entity and may belong to their respective copyright holders.


 

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