Measuring the Value of AAA Services

Older adults rely on services provided through the nation’s network of Area Agencies on Aging (AAAs) to address common issues associated with aging. AAAs help older adults age in their homes and communities by offering a system of services and supports, including in-home services, nutrition programs, case management, transportation, caregiver support, elder abuse prevention and intervention services and more. However, AAAs
face two concurrent pressures. First, the aging population in the United States is growing faster than ever before. In just over a decade, by 2030, more than 70 million Americans —one in five individuals—will be age 65 or older. Second, AAA funding from traditional funding sources such as the Older Americans Act has largely been stagnant over the last decade.

As a result, many AAAs are looking to other sources of sustainable revenue for the services and supports they provide—such as partnerships with health care systems—as a way to diversify their funding streams while maintaining a focus on enabling older Americans to age successfully in their homes and communities. Simultaneously, health care entities are more interested than ever before in working with community-based organizations (CBOs) like AAAs as they strive to improve health outcomes while keeping costs contained. These shifts have created opportunities for AAAs to engage with health care partners in formal relationships that
benefit AAAs, health care organizations and the individuals who receive services. However, in order to establish formal agreements with health care entities, AAAs often are required or incentivized to demonstrate the financial value that their services bring to these partnerships.

This report highlights results from a poll conducted by the National Association of Area Agencies on Aging (n4a) that gathered information on how AAAs measure the financial value of their services and how they leverage this data to establish and/or sustain relationships with heath care entities.