A nearly 7.5% increase in census helped InnovAge, a leading Program for All-Inclusive Care for the Elderly, turn in blockbuster fourth-quarter revenues. The Denver-based company, which only went public a few months ago, made $635 million in the final quarter of its 2021 fiscal year, which ended June 30. That amounted to a 12.5% increase over the same quarter in 2020.
InnovAge President and CEO Maureen Hewitt told investors on a late Tuesday afternoon earnings call the successful quarter tees up InnovAge to expand into two new states and open two PACE centers in Florida and one in Kentucky.
“In all three sites we are renovating or plan to renovate existing buildings and we are diligently working through the development process,” Hewitt said.
InnoVage currently operates 17 PACE programs in Colorado, California, New Mexico, Pennsylvania and Virginia, serving more than 6,800 clients. PACE provides dual-eligible Medicare and Medicaid beneficiaries with healthcare and social services in their communities, rather than in skilled nursing facilities.
The Biden administration’s Build Back Better initiative to direct billions of dollars into home-and-community-based services and a handful of CMS Innovation Center pilots that could benefit PACE brighten the path forward for InnovAge.
Still, PACE programs face possible headwinds from the COVID-19 pandemic, which forced the shutdown of PACE centers for nearly a year, as well as a shortage of healthcare and home care providers.
Hewitt conceded the pandemic remains a concern but said 90% of InnovAge staff and86% of its clients are fully vaccinated. She said the company is also working aggressively to recruit and retain staff during the pandemic.
“We utilize recruitment process outsourcing, alongside our internal recruiting team and also utilize temporary help to fill positions on an interim basis,” Hewitt said.
InnovAge became a publicly traded company last March. The company recently expanded its executive team to include a chief legal officer, chief people officer and chief compliance officer.