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

Jason Cassorla: Anything in your guidance or expectations around that or would you just kind of assume that goes forward?

Ben Adams: There’s nothing specific in guidance included about that. I think we’ve looked at the totality of our costs going forward. And then we’ve used those to look at guidance. We obviously look at and consider these types of scenarios in conjunction with Dr. Feifer and others, but there’s nothing specific guidance related to that item.

Jason Cassorla: Fair enough. Thank you for all the color today.

Operator: Thank you. [Operator Instructions] That will come from the line of Matt Larew with William Blair. Your line is open.

Madeline Mollman: Hi, this is Madeline Mollman on for Matt. I just wanted to say, I think you said that the Sacramento post audit monitoring period have been lifted earlier than expected. But just to clarify, are you still in the post monitoring period in Colorado? And what do you anticipate the sort of impact on total cost to be from that in 2024?

Patrick Blair: Yes, just — this is Patrick.

Madeline Mollman: Hi, Patrick.

Patrick Blair: So in Sacramento both CMS and the state have released us for monitoring and we’re just sort of going through the remaining steps to sort of close that out. In Colorado, I don’t want to try to predict what the outcome will be there, but what I can say is we are having consistent month over month positive results in Colorado, but we’re expecting that to continue through the end of the year. It would be a surprise if it’s shortened and we welcome that. But the team is doing a great job in Colorado. So feeling really good about that. In terms of cost, it’s still a bit early to tell. The fact that Sacramento ended early really hasn’t had much of an impact in terms of our costs associated with the audits, because we just pivoted a small team of people to the Colorado site.

But I think once Colorado ends, there definitely are going to be areas where we expect some improvements in our staffing costs. We use a lot of third parties just to support and augment our team when it comes to audits and those will cease once the monitoring is done, and then we’ll be looking for other areas to sort of pick up some cost savings as a result of the monetary slowdown, but I don’t know that we have a target number quite yet.

Madeline Mollman: Great, thank you. And then with the new enrollment, the patients that are being enrolled in the sort of unfrozen centers, have you seen any initial trends in terms of age, acuity et cetera, compared to the existing patient population that you had?

Patrick Blair: In the non-sanctioned markets I would say that we’ve seen any significant differences from what we’ve experienced historically. Our goal is always to have our population reflect the population in the community and the community is made up of — has a mix of people that are living independently and those that are receiving some type of supportive housing and so that continues, I think in all of our markets. So there is nothing remarkable that I would point out in terms of that, but I think the key is, we will have more sanctioned centers and we are growing everywhere now.

Madeline Mollman: Great, thank you so much.

Operator: Thank you. I am showing no further questions in the queue at this time, I would now like to turn the call back over to Patrick Blair for any closing remarks.