With its sanctions lifted, InnovAge is poised for growth, the CEO said recently.
“This moment can be viewed as the end of one chapter in the beginning of a new one,” CEO Patrick Blair said last week during the firm’s 2023 fiscal third quarter earnings call. “Our centers have been focused on closing compliance gaps and building the infrastructure, business processes, talent and culture to consistently achieve operational excellence. The chapter in front of us will build on the shoulders of the last, and we’ll concentrate on aspiring to deliver best-in-class quality and participant satisfaction, which we believe will result in consistent, responsible, profitable growth.”
The company, which is a for-profit Program of All-Inclusive Care for the Elderly, lost a wider $7.3 million in the quarter on slimmer revenues of $172.5 million. The sanctions, which were imposed last year on centers in Colorado and California, have weighed down the company. InnovAge also posted a loss last quarter.
On May 1, the Department of Healthcare Services in Sacramento, CA, released the company from enrollment sanctions — the company’s last remaining sanction, Blair said.
“To be sure, this is good news for our ability to pursue our broader desired footprint in California,” he said during the call. “While Sacramento currently has only a small census of about 130 participants today, we believe it’s an attractive market and has the potential to drive meaningful organic growth, especially with our JV partners, Adventist Health and Eskaton.”
InnovAge is working to ramp up enrollment in Colorado. However, the CEO noted that CMS and the state are enforcing post-sanction monitoring that may “create a modest but ongoing headwind to our local staffing costs and the rate of staffing ratio improvement for the remainder of the calendar year.”
The company also is resuming the administrative process to open centers in Tampa and Orlando, Blair said.
