InnovAge Holding Corp. (NASDAQ:INNV) Q4 2023 Earnings Call Transcript

Jason Cassorla: Great, thanks. Wanted to ask about revenue PMPM development, ’24 revenue and census guidance ranges are pretty wide, but just directionally what you expect a continued quarterly step up in PMPM in the first half of the fiscal year, then maybe some rollover in the back half as the average acuity of your census decreases, the lower ‘24 MA rate kicks in, those January 1 kind of rate increases kick in for Medicaid or can you just give us a sense of how PMPM development should trend moving through fiscal 2024?

Ben Adams: Sure. Great, great to meet you virtually over the phone. I think in terms of revenue PMPM, there’ll be some variability from quarter to quarter, over the course of the year. So I think if you take a look at what we’ve given in terms of revenue guidance and in terms of member months you can figure out where we expect to get over the course of this year. We are expecting some reasonable rate increases from various states over the course of the year. And so I think if you look at the progression, it should be relatively logical over the year.

Jason Cassorla: Okay, got it, thanks. And then I just wanted to go back to your comments on Medicaid redetermination. I would think the higher acuity nature of census population in the PACE process would sort of insulate from perhaps procedural redeterminations, but it sounds like there could be pressure more on the enrollment side, I guess, just any incremental color on the redeterminations impact within the outlook would be helpful. Thanks.

Patrick Blair: Sure. I think you’ve got the, you’ve got it right. Just generally speaking, we don’t expect our population to be impacted much by redetermination relative to say other Medicaid managed-care programs. I think the point that we’re making is that it’s a big initiative across all of our states and are actively pursuing redetermination. And sometimes, the resource constraints can be felt in the PACE program. So, as we said before, enrollment in PACE is sort of a partnership with our states, there’s various steps in the enrollment process and in various areas where we showed data. And if there are constraints from a resource perspective driven by redetermination, we can feel that in a bit of a slowdown. Thus far, we’ve been able to work through it, and sort of every state through our relationships.

We just pointed out, because it is sort of an overarching macro initiative happening within Medicaid, that can have a resource constraint within the enrollment processing, but not impact eligibility of our members, or result in our members not being enrolled, it can simply be a timing question.

Jason Cassorla: Okay, got it. Thanks for the clarity. And maybe just one last one here, just headlines over the past month or two indicating a new COVID variant and an uptick in COVID admissions I guess throughout the US. Have you started to see an increase in COVID incidents across your census population. And I guess last one, it was a tough flu and RSV season. I’m just curious on what’s embedded in guidance around kind of this upcoming winter, COVID and perhaps flu season. Just any thoughts there would be helpful. Thanks.

Patrick Blair: Sure. I am going to ask Rich to weigh in on that.

Rich Feifer: Yes. We already are seeing an increasing number of cases, whereas for the last few months before this month, things have been really quiet. We have a couple of outbreaks that are relatively minor, just clusters of cases involving participants and staff. But so far, we’re not seeing severe cases. Remember we have generally, a highly vaccinated population of participants and staff they likely have residual immunity. And we will be focusing on giving them the new monovalent vaccine, which was just recommended today by the CDC. We’ll be focusing on giving them boosters this fall, to ensure that that level of immunity continue. So, yes, it’s an issue, but no, it’s not adversely affecting our population or our economics much at this point.