The Administration on Aging (AoA) issued, in the June 25, 2007 Federal Register, a notice of available funding under the Nursing Home Diversion Modernization Grant program. This is a competitive grant program for State Units on Aging, in partnership with Area Agencies on Aging and in collaboration with community aging service providers and other key long term care stakeholders, to modernize and transform non-Medicaid funding into “flexible, consumer-directed service dollars to support nursing home diversion projects.” This grant program is meant to complement the Center for Medicare and Medicaid Services Money Follows the Person Initiative by strengthening the capacity of states to reach older adults before the enter a nursing facility and spend down to Medicaid. It is in line with the strategy authorized in the Older Americans Act to help seniors to avoid unnecessary nursing facility placement and spend down through the use of flexible, consumer-directed models of care.
The total amount of federal funds available for this new grant program is expected to be about $5,000,000. AoA plans to fund up to 10 to 12 states for a period of 18 months, with an average grant of approximately $400,000. Funds will be awarded by September 30, 2007. Letters of intent to apply are due by July 20, 2007, but are not required. Minimum project outcomes are:
- Provide consumers with flexible service options;
- Use of targeting criteria to effectively identify and serve individuals who are at risk of nursing facility placement and spend-down to Medicaid; and
- Use of a single entry point system to perform the functions of client screening, assessment, care planning, and the targeting of service to individuals who are at risk of nursing facility placement and spend-down to Medicaid.
More information is available on the AoA Web site at 
http://aoa.gov/doingbus/fundopp/announcements/2007/Nursing%20Home%20Progam%20Annoucement.doc.