Full Press Release Details
InnovAge Announces Audit Sanctions In Colorado
And Withdraws Guidance
DENVER, December 23, 2021 - InnovAge
Holding Corp. (the "Company" or "InnovAge") (Nasdaq: INNV), an industry leader in providing comprehensive healthcare
programs to frail dual-eligible seniors, announced today that the Centers for Medicare and Medicaid Services (CMS) sanctioned the Company's
Colorado centers based on deficiencies detected in a focused audit.
On December 22, 2021 InnovAge was notified that CMS had
determined to suspend new enrollments at the Company's Colorado centers based on deficiencies detected in an audit that was
conducted earlier this year, the final results which have not yet been disclosed to the Company. CMS identified the following
deficiencies, including a failure:
CMS indicated that the suspension will remain in effect until it determines
that the Company has remedied such deficiencies to its satisfaction.
The Colorado Department of Health Care Policy and Financing
(HCPF) has verbally communicated that they are also issuing sanctions in conjunction with CMS and will provide written communication
on December 23rd, 2021, identifying the deficiencies specific to Medicaid.
The Company continues to work with CMS and HCPF to respond to the sanctions
and is evaluating its options with regard to its rights to appeal the sanctions from both CMS and HCPF. The Company cannot guarantee the
outcome of any of these processes.
As a result of the enrollment freeze, the Company is withdrawing fiscal
InnovAge is a market leader in managing
the care of high-cost, dual-eligible seniors. Our mission is to enable seniors to age independently in their own homes for as long as
possible. Our patient-centered care model meaningfully improves the quality of care our participants receive, while reducing over utilization
of high-cost care settings. InnovAge is at the forefront of value based senior healthcare and directly contracts with government payors,
such as Medicare and Medicaid, to manage the totality of a participant's medical care. InnovAge believes its healthcare model is
one in which all constituencies - participants, their families, providers and government payors - "win." As of
Sept. 30, 2021, InnovAge serves approximately 6,990 participants across 18 centers in five states. https://www.innovage.com/.