InnovAge (INNV) KeyBanc Annual Health Care Forum 2025 summary

PACE market overview and value proposition

• PACE provides comprehensive medical and social services to frail, dual-eligible seniors as an alternative to institutional care, enabling them to remain at home or in assisted living.

• The model integrates care delivery and payment, taking full financial risk and offering budget certainty to states through capitation.

• PACE programs save states money by reducing institutionalization, improving care coordination, and lowering healthcare cost inflation.

• The program supports both participants and their families, enhancing quality of life and independence.

• PACE is gaining attention from investors and regulators due to its performance during the pandemic and potential for growth.

Company positioning and competitive advantages

• Operates the largest PACE provider network, serving 7,500 participants across 20 centers in six states.

• Scale enables investment in advanced clinical, operational, and financial technology, such as Epic and Oracle systems.

• Developed a repeatable blueprint for center growth, acquisitions, and new market entries.

• Attracts top healthcare talent, competing with large managed care and provider organizations.

• Strong capital structure supports strategic growth initiatives.

Operational improvements and compliance

• Addressed significant compliance gaps and audit deficiencies through automation, process redesign, and talent investment.

• Implemented Epic to automate record-keeping and reduce human error.

• Strengthened relationships with state officials and CMS to rebuild confidence.

• Shifted focus from remediation to operational excellence and platform development for future growth.