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InnovAge could soon start admitting new members again in Colorado and Sacramento, CA, nearly a year after state and federal sanctions suspended enrollment for the firm’s Programs for All-Inclusive Care for the Elderly (PACE).

InnovAge CEO Patrick Blair told Wall Street analysts last week the PACE program began validation audits earlier this month in California and said similar audits will begin early next month in Colorado. 

Headshot of Patrick Blair
Patrick Blair

“In both instances, it remains difficult to predict the precise timing of when the sanctions will be released and when we will be approved to begin enrolling new participants in these markets,” Blair told analysts.  “And to be clear, audit validation timing and determinations will be made independently and at the sole discretion of our federal and state regulators.” 

Late last year, the Centers for Medicare and Medicaid Services froze enrollment at InnovAge PACE programs in Colorado and Sacramento after an audit found the company failed to provide participants with medically necessary items and services that are covered under PACE, a community-based program for dual eligible Medicare and Medicaid beneficiaries. The suspension led to the ouster earlier this year of former CEO Maureen Hewett.  

Blair told analysts the company has taken steps to mitigate future deficiencies by investing in a permanent infrastructure that will regularly and proactively identify gaps in care. He said the measures include tracking and monitoring internal compliance measures on a digital dashboard. 

Blair’s remarks came during the company’s quarterly earnings call with analysts. In the three months ended Sept. 30, the company lost $13.7 million. InnovAge earned $7.6 million during the same period last year. 

The regulatory actions have been a weight on Denver-based InnovAge, which went public in March of 2021. The company has reported losses for three consecutive quarters, blaming the enrollment moratoriums for the financial hits. Adding to the company’s woes, angry investors filed a fraud suit against the company last summer claiming it violated security laws. Plaintiffs claim the company was singularly focused on aggressive enrollment for profit at the expense of seniors enrolled in its PACE programs.

InnovAge operates PACE programs in Colorado, California, New Mexico, Pennsylvania and Virginia.