InnovAge Holding INNV

InnovAge Holding Corp. is a healthcare delivery platform that provides all-inclusive, capitated care to high-cost seniors, many of whom are dual-eligible for Medicare and Medicaid, through its Program of All-Inclusive Care for the Elderly (PACE). The company was formed to address rising healthcare costs and poor outcomes by keeping participants in their homes and reducing reliance on expensive settings such as hospitals and nursing homes. As of June 30, 2025, InnovAge served approximately 7,740 PACE participants across 20 centers located in California, Colorado, Florida, New Mexico, Pennsylvania, and Virginia. Its model integrates medical, therapeutic, social, and support services to enable seniors to age independently while aligning with the shift toward value-based care.

InnovAge Holding Corp. generates revenue primarily through capitated payments received on a per member, per month basis from government payors including Medicare Parts C and D, Medicaid, and the Veterans Administration, as well as from private pay sources. The company receives 100% of the pooled capitated payment and assumes full financial responsibility for the healthcare costs of its participants, eliminating reliance on third-party administrative organizations or health plans. Based on its experience, InnovAge estimates an average annual revenue opportunity of $115,000 per participant, equivalent to $9,600 per member per month, reflecting the acuity of the population it serves. This predictable revenue stream provides visibility into financial performance and supports long-term planning.

The company operates through the following segments: PACE.

• PACE: Provides comprehensive medical and supportive services to frail, dual-eligible seniors, including in-home care (skilled, unskilled and personal), in-center services such as primary care, physical therapy, occupational therapy, speech therapy, dental, mental health and psychiatric services, meals, activities, transportation to and from the center and third-party appointments, and care management under a fully capitated model.

InnovAge Holding Corp. holds the leading position in the PACE industry by participant count, operating the largest network of centers in the United States with 20 facilities across six states as of June 30, 2025. The company is 16% larger than its closest PACE-focused competitor and more than 30 times the size of the typical PACE operator, underscoring its scale advantage. Its competitive advantages derive from a vertically integrated care model that coordinates all aspects of a participant’s health, direct contracts with Medicare and Medicaid that reduce administrative costs, and a focus on value-based care aimed at improving outcomes while lowering expenses. The company estimates a total addressable market of $265 billion based on approximately 2.3 million PACE-eligible seniors nationwide, of which only about 85,000 were enrolled in any PACE program as of mid‑2025, indicating a substantial growth opportunity. Industry observers note that key competitive factors include participant experience, quality of care, health outcomes, total cost of care, brand identity, and trust in the organization.

InnovAge Holding Corp. serves frail, dual-eligible seniors who qualify for both Medicare and Medicaid and meet nursing home eligibility criteria, with its participants typically presenting an average of ten chronic conditions and requiring assistance with two or more activities of daily living. As of June 30, 2025, approximately 93% of participants were able to live safely in their homes and communities, reflecting the effectiveness of the model in supporting aging in place. The company’s revenue is derived from contracts with government payors such as Medicare, Medicaid, and the Veterans Administration, as well as from private pay individuals who choose to enroll in the PACE program. Satisfaction is measured through a Net Promoter Score, with an average score of 45 in quarterly surveys and an I‑SAT NPS of 56 in fiscal year 2025, exceeding the national PACE program average of 55.