InnovAge (INNV) 44th Annual J.P. Morgan Healthcare Conference summary

Business Model and Differentiation

• Operates a scaled, vertically integrated payer-provider platform focused on frail, dual-eligible seniors, delivering comprehensive, interdisciplinary care through a center-based model with full financial accountability for outcomes and costs.

• Maintains full risk for all Medicare and Medicaid services, with no delegated risk or carve-outs, enabling real-time control over utilization and costs.

• Delivers superior outcomes, including 10% lower inpatient admissions, 40% lower 30-day readmit rates, and enables over 90% of participants to live independently.

• Integrated model aligns payer and provider functions, supporting small panel sizes for intensive, high-touch care and avoiding fragmented accountability.

• Market opportunity remains significant and underpenetrated, with bipartisan policy support and a fragmented competitive landscape dominated by subscale operators.

Operational Transformation and Technology Investments

• Multi-year investments in scalable technology, including Epic EMR, Oracle financials, and Salesforce, have strengthened the foundation and improved productivity.

• Insourced key clinical functions such as hospice and pharmacy, enhancing quality and efficiency.

• Leveraging AI to analyze provider ordering patterns, optimize staffing, and improve clinical decision-making.

• Operational improvements and leveraging fixed overhead costs have expanded margins, driven profitability, and created a platform for responsible growth.

• Centers in key states have available capacity, with growth tracking to internal plans and partnerships accelerating expansion.

Growth Strategy and Market Expansion

• Focused on both de novo center development and bolt-on acquisitions, with each strategy evaluated based on market size, state support, and operational efficiency.

• Recent acquisitions, such as ConcertoCare, have demonstrated rapid revenue and census growth when integrated into the platform.

• Health system partnerships and joint ventures are key to expanding referral pathways and community presence.

• Lessons from de novo launches highlight the importance of strong local relationships, targeted service areas, and building PACE awareness.

• Actively evaluating new state RFPs for PACE expansion, with a disciplined approach to capital deployment and market selection.