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Kaiser Permanente for seniors, but focused on keeping them independent in their homes and communities.

A 'one-stop-shop' like Sam's Club or Costco, but for all the medical, social, and daily living needs of seniors who want to live independently at home.

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• Program of All-Inclusive Care for the Elderly (PACE): An integrated healthcare model that provides comprehensive medical and ancillary services to seniors allowing them to live independently.
• In-Home Care Services: Direct care provided in participants' homes, encompassing skilled nursing, unskilled assistance, and personal care.
• In-Center Services: A variety of medical, therapeutic, nutritional, and social services delivered at dedicated PACE centers.
• Transportation Services: Coordinated transportation for participants to attend appointments at PACE centers and other third-party medical facilities.
• Care Management: Professional oversight and coordination of all aspects of a participant's individualized care plan.

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InnovAge (INNV) primarily sells its services directly to individuals. The company manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in their homes and communities through the Program of All-Inclusive Care for the Elderly (PACE) approach.

The categories of customers it serves are:

1. Seniors and Elderly Individuals: The company's core mission is to serve older adults who require comprehensive care and support to maintain their independence and live in their homes and communities.
2. Participants in the Program of All-Inclusive Care for the Elderly (PACE): InnovAge's customer base consists of individuals enrolled in the PACE program. These participants are typically 55 years or older, certified by their state to need nursing home-level care, and able to live safely in the community with PACE services. The company serves approximately 6,850 PACE participants.

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Patrick Blair, Chief Executive Officer

Patrick Blair was appointed CEO of InnovAge in January 2022. He has a tenure of over four years with the company.

Ben Adams, Chief Financial Officer

Ben Adams joined InnovAge as Chief Financial Officer in July 2023. He previously served as CFO of Kepro, a physician-led, technology-enabled company, and RxSense, LLC. Earlier in his career, Adams spent over two decades as a senior healthcare investment banker.

Christine Bent, Chief Operations Officer

Christine Bent was named Chief Operations Officer of InnovAge in March 2023. Prior to joining InnovAge, she was Senior Vice President and COO at Prime Therapeutics LLC, a privately held pharmacy benefit manager. She also held clinical and operations leadership roles at Allina Health for 12 years, and leadership positions at Atrius Health and Partners Community Healthcare.

Paul Taheri, MD, MBA, Chief Medical Officer

Dr. Paul Taheri was appointed Chief Medical Officer of InnovAge in November 2025. He previously served as Clinical Quality Advisor to Welsh, Carson, Anderson & Stowe (WCAS), a private equity firm that is a major shareholder in InnovAge. Dr. Taheri's prior experience includes roles as CEO and Deputy Dean for Clinical Affairs at Yale School of Medicine, and President and CEO of the University of Vermont Medical Group.

Nicole D'Amato, Chief Legal Officer & Corporate Secretary

Nicole D'Amato has served as InnovAge's Chief Legal Officer and Corporate Secretary since July 2021. Before InnovAge, she was Senior Vice President at MacAndrews & Forbes, a company that owned a majority stake in Revlon, Inc. and was a major shareholder of Scientific Games, among other private companies. She also held senior legal roles at DIAGEO North America, Inc. and Samsonite, LLC, where she was involved in Samsonite's initial public offering on the Hong Kong Stock Exchange.

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Key Risks to InnovAge (INNV)

1. Regulatory Scrutiny and Dependence on Government Payors: InnovAge operates under the Program of All-Inclusive Care for the Elderly (PACE) model, making its revenue highly dependent on government payors like Medicare and Medicaid. This exposes the company to significant regulatory risks, including audits, policy changes, and potential sanctions for non-compliance. InnovAge has previously faced enrollment suspensions and citations for care deficiencies from the Centers for Medicare & Medicaid Services (CMS) and state regulators, directly impacting its ability to enroll new participants and grow its business.
2. Cost Management Challenges within a Capitated Model: As a PACE provider, InnovAge assumes 100% of the healthcare costs for its participants under a capitated payment model. While this model aims to incentivize preventive care and cost reduction, there is a substantial risk that the cost of providing comprehensive services, especially to its high-acuity population with an average of ten chronic conditions, could exceed the fixed compensation received. Challenges in managing these costs effectively, coupled with rising care expenses and losses from new centers, could hinder the company's path to consistent profitability.
3. Staffing Shortages and Maintaining Quality of Care: InnovAge faces challenges related to workforce shortages in the healthcare sector, particularly for geriatric and primary care. Current and former employees have cited understaffing, high caseloads, and organizational dysfunction leading to delayed or inadequate care for participants. Such issues directly impact the quality of care provided, patient satisfaction, and can lead to regulatory actions and reputational damage, all of which are critical for the long-term success of a healthcare service provider.

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The increasing trend among Medicare Advantage (MA) plans to offer comprehensive supplemental benefits, including in-home support, transportation, meal delivery, and enhanced care coordination, which directly overlap with and provide an alternative to the all-inclusive services offered by the Program of All-Inclusive Care for the Elderly (PACE) model.

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The total addressable market for InnovAge's main product and service, the Program of All-Inclusive Care for the Elderly (PACE), is estimated to be $260 billion in the United States.

This market size is based on an estimated 2.3 million PACE-eligible individuals in the U.S. as of 2023. InnovAge targets frail, high-cost seniors who are dually eligible for Medicare and Medicaid and meet nursing home eligibility criteria. Currently, only a small fraction of these eligible individuals are enrolled in PACE programs, with approximately 77,000 participants as of June 2024.

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InnovAge Holding Corp. (INNV) is expected to drive future revenue growth over the next two to three years through several key strategies:

1. Participant Growth (Census Growth): InnovAge consistently emphasizes increasing its participant base within its Program of All-Inclusive Care for the Elderly (PACE). The company reported serving approximately 8,010 participants across 20 centers as of December 31, 2025, marking a 7.1% growth compared to the second quarter of fiscal year 2025. InnovAge's fiscal year 2026 guidance projects an ending census of 7,900 to 8,100 participants.
2. Increased Capitation Rates: A significant portion of InnovAge's revenue is derived from capitation rates, which include annual adjustments from Medicaid and Medicare. Increases in these capitation rates directly contribute to revenue growth.
3. Expansion of De Novo Centers: InnovAge is actively expanding its footprint by opening new "de novo" centers, such as those in Florida. While these new centers initially incur losses during their ramp-up phase, they are anticipated to become substantial contributors to revenue as they mature and increase participant enrollment.
4. Successful Medicaid Reinstatements: The company has seen revenue growth driven by its success in reinstating participants who had previously lost Medicaid coverage. This initiative directly contributes to census growth and, consequently, revenue.
5. Operational Efficiencies and Revenue Integrity: InnovAge is improving its revenue through enhanced revenue integrity processes, including a reduction in revenue write-offs and a strengthened Medicaid eligibility tracking system. These operational improvements ensure the company effectively captures the revenue it is entitled to, thereby contributing to overall revenue growth and profitability.

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Share Repurchases

• InnovAge reported a repurchase of equity securities totaling approximately $5.912 million in a period within fiscal year 2025.

Share Issuance

• InnovAge completed its Initial Public Offering (IPO) in March 2021, issuing 16,666,667 shares of common stock at a price of $21.00 per share, raising approximately $350.07 million in gross proceeds.
• Including a partial exercise of the underwriters' option to purchase additional shares, the IPO ultimately involved 18,995,901 shares, generating approximately $399 million in gross proceeds.

Inbound Investments

• Prior to its IPO, InnovAge was a portfolio company backed by private equity firms Apax Partners LLP and Welsh, Carson, Anderson and Stowe LP.

Capital Expenditures

• For the second quarter of fiscal year 2026 (ended December 31, 2025), InnovAge incurred $2.4 million in capital expenditures.
• The company anticipates requiring significant capital expenditures to grow and evolve its operational and financial operations, including ensuring personnel licensing and training.
• InnovAge's investments aim to improve health outcomes and reduce medical costs for participants, with long-term plans to reinvest savings back into the InnovAge Platform.