INNV - Earnings call 2 2024 | InnovAge Holding Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and thank you for standing by. Welcome to the InnovAge Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to hand the conference over to your first speaker today, Ryan Kubota, Director of Investor Relations. Please go ahead.

Ryan Kubota

Thank you, operator. you earnings joining call. thank XXXX InnovAge and quarter second afternoon, all the for fiscal Good With and Adams, CEO; today and me is Ben CFO. Patrick Blair, President Dr. be of Rich the a quarter results press information market will for Medical detailed Feifer, issued also containing our Chief closed, we Q&A call.Today, the XXXX. on portion release after our the Officer, second joining quarterly fiscal

this release our to today, the and access are on we of company the subsequent updated innovage.com.For may Relations herein of not this our have that You section Tuesday, you call. listening website, those rebroadcast made XXXX, the call, remind Investor been to February remarks X, of as

on our CEO, completion the will our for Form SEC, call risk the differ we the are certain measures open questions. centers, XXXX and reconciliation During Florida GAAP from review involve statements, our turn fiscal measures. also our year initiatives, of year full the including our to assumptions regulatory can I the Patrick We annual prepared our can be discussed statements with risks over and the to refer to listeners most related current found of report forward-looking subject that will making actual will will our clinical quarterly expectations. are Form all press filed inherently to XX-K to and Patrick? and including our results call, website.We directly forward-looking payer actions, statements on the materially fiscal cautioned most to release in reports certain cause be posted report comparable call novo projections, measures of our of current and non-GAAP to value earnings and A in status our of uncertainties Listeners future our growth recent prospects, ConcertoCare, our for other capabilities and that Blair. advise President our subsequent de expectations. our future remarks, these now factors we acquisition XX-Q.After

Patrick Blair

improvement $X.X $XXX and Thank The a million. begin quarter represents while broader the increase and to in ongoing and approximately restoring XXX, the represents were the which of quarter, colleagues, good performance approximately incremental was of which X.X% million, to center-level business. second responsible period.We want community margin a further compared million support across our and consistent InnovAge. X%.Now, participants, quarter accelerate which expressing for improvement sanction you, million of for It continued improvement growth I the lost significant the Participant to margin. a compared with represents which EBITDA Ryan, quarter, the quarter-over-quarter delivering. results Census to quarter, to highlight the was first X,XXX, my to a afternoon, our Adjusted government we confidence growth, who margin in at first the partners XX.X% plan company's contribution strengthen for an $X.X increased was demonstrates the revenue operating $XX quarter, highlights. continues our are value regulatory of progress reported appreciation everyone. investor to transformation our by expectations during proposition the enrollment few which net solid

our decrease trends, Our beginning expectations utilization are unnecessary refer efficiency greater translate value our into evidenced as lowering quarter-over-quarter quality of X.X%. and PMPM and in focus we expense and clinical a in CVIs on with initiatives, operational which by them, to line to participant as enhanced maturing cost medical

progress and of implementation in to XX.X% California, Pennsylvania, our opened earnings us, which as half We and New January our and acquired our and a now On making.We 'XX administrative service with Mexico, completed we're general states: pleased in laser center added non-center officially On EMR with we the PACE, sequential in all new new work, X in a ConcertoCare are new XX.X%, in Epic percentage centers of we're X our are Southern California from fiscal Virginia in revenue and still effectively managing expenses December on progress Florida.With exiting fiscal the operational decrease the locations. in this strategic Tampa pleased costs we we're in behind year remain Colorado, functions, we early X, X, the focused but innings enterprise the momentum. our highly of solid resulting are market. with

financial a we glide and 'XX. our goals significant to a work path for have sequential half remains demonstrated progress, fiscal second successful for quarter-over-quarter the achieve of 'XX While strong create to fiscal

pace, great As to last drive to a remain it the intentional have compliance address an will excellence. of perseverance full I team, the time.Before continuing quarter, of performance, continues mentioned unlocking take to on We Simply to to in to quarterly track and a moment foundation organization and on plan, a California included regulatory we're the update and XX-Q. consistent believe potential build we our come we execution. that which confidence our near-term while turning operational want down our the focused to performance, take long-term levers put, at in I

center PACE that in all agencies DHCS their released Healthcare In and release and November satisfaction was October center remaining required XXXX, been operations. annual no years that centers of were of first of California the were of Services sanctions in their routine had enrollment from systemic CMS there during Sacramento XXXX the concerns. final corrective audit As our X May conducted you'll for to that new in by resolved as Underpinning CMS XXXX. of Sacramento actions recall, by we and validation of Department from our both

conducting reinstate a center. novo attestations were this de Bernardino targeted its in open processes but have of process are in has indicated will planned satisfactory evaluate Bakersfield, the lifting and approved upon also it the matter. shared identified DHCS we notified deficiencies. the attestations. medical We us. communicated we upon actions to remediating, that our suspension issues.DHCS issues scheduled careful findings, successfully which weeks support corrective findings, After of accordance the review that that to with Following state had that CMS has with resolution ago it systems Downey DHCS identified week, in we suspended findings. specific DHCS, DHCS satisfaction any audit, X correct are the policies, which summer confident our confident of the centers of and remain their that which address of CMS are findings San they that the full our Last and will the will be review of the similar place will to the it remediation to we in us in

rightfully to We with so. remain a also regard normal PACE Audits confident expansion and are for highly actions corrective organizations, given we all regulated plans.This area, course is the serve. our populations

the the years been positive cascade case. in that X quickly their want last we one be the are every compliance the center center organization.I joined foundational my identified, trend month, has Star provide North seen years across then learnings ago, I center for of When always line. will in audits audits and every closely our company seen changes to since improvement over have own the and be make clear, and consistently them at opportunities work and benefits we've high-quality to regulators X clear We our conduct on each care. made We with a we've the

of turn commitment distinction share embrace draw regulators to business. and leaders collaborate to felt important Our where context the are relative and our X.X state continuously with to ago.Now, this our my I'll critical it the and starting today recent to transparency to about with share growth. was opportunity years existing improve center performance, federal I details to we

the monthly levels participant with above New quarter, consistent expectations. consecutive our enrollment continues for pre-sanction second

mentioned enrolled have outset, the than of the quarter the XXX half the XXX I fiscal participants at we As in first enrolled more in participants and year.

to of housing.We integrated between continue their of solution to the our This InnovAge in participants homes. nursing partners. in appropriate allows touched and is increase reflect we independently quarter, enrollment fiscal individuals mix pleased Medicare and our X some annual our total see community in strong helps third rebalance which effort growth from anticipate state some of and an to the up to excess organic especially for balance our the demand quarter, seniors that supportive demand new in overall utilizing related the risk centers level as efficiently in Last evident XX% that pool. approximately those stay approach Colorado, growth, see that We're sequential sales require new most is homes in out our quarter. we may and the key to qualified of modest the This contributes and participant joint communities a objectives: period. capacity enrollment seasonality on As leads, we living prior

new level the targeted of delays, we challenges While levels. which who resulted are The are post assessments and versus but which eligibility experiencing Medicaid part can our care up include in speed select consistent participant, in-person barriers we into health potential constraints, enrollment redetermination. enrollment we observe state public affect does with through service aggregate changes resource telephonic, PACE. expectations, this processing emergency ramping them vendors require due we're that to that in markets, rather to to now still of Recall enrollment seeing not state get have enrolled continue policy in the

can translate other into can delays evaluating lengthy missed enrollment However, result in and opportunities. prospects options

completed is we're to committed expected these issues center InnovAge XX,XXX state, the deserving efforts center. square at To and the [ the eligible us and sixth the are frail interested any we're the our is participants the of Our de Like center approximately for included eligible dual an We state the participants it ConcertoCare. center acquisition for census of with joining enrolling barring PACE stages a of delays.On to a currently in Enrollment in this the is lack state remain with enablement pre-launch it's novo minimal Southern approximately licensure to opened Orlando individuals Tampa, we're in quarter, Orlando participants today.On will anticipate front, to an rapidly novo and practices eligible operating recently Bakersfield. be possible. application the resolving positive, announce unforeseen as comparably Angeles neighborhood we're underway our to of a and model. between this California maturity. December best serve attractive and new new operational more final eligible partners center Tampa we integrated ready acquisition begin of population.We're design, the Los technology fourth finding that ] building center. push We is active transaction latest feet centers Crenshaw more community. consider many a as hybrid job Recall, expanding of of number in and the de X from the as state-of-the-art in to in at in X, the X,XXX of participants final accept activities solutions pleased believe our #X and in sized for We than represents also Florida given and access in terms

this centers will as to novo operating centers, a losses note, faster existing these We facilitate we centers have the cost-effective while in augment pending new our demonstrate responsible continue And consolidated and our been term building scratch, operating compared our add more evaluating from center alternatives through centers EBITDA work together, to Of to growth from our expansions. fully growth de we market. the modest several implement with along X. ability enabling believe we to with maturity Downey, center expansion these near anticipate curve.Taken to these us model in day cost-effective

accountability in KPIs. embedded measure uplift performance recall earnings represent our once the overall We these our increasing are of be includes centers in X-pillar term every in term.You'll more service, serve center, we believe meaningful of the are drive driver every all portfolio and through for results which several capacity that the month. significant geographies We opportunity quality, more while framework, months, excited measure and which we by growth for next growth XX% seniors approximately near also will long a in and to open, financial people, over these

We highest area in and as people, strengthen of see improving progress of with the compliance the supportive cost in targets year-to-date, and trending in to aggregate, service we this last perspective. go focus short-stay our reducing to pillars, areas In we continue skilled new see provider quality ensuring fiscal and initiatives strong and results quality areas across our value quality, compliance housing invest performing as initiatives as the ahead and we'll strong and as costs and continue quarter our contract to most also utilization. necessary network to portfolio improvements is of costs continue the we mature. have centers.Separately, and in quality audits. reduced resources We've each such in meaningful inpatient through continually compliance quarter a costs.One external such people further and internal we're of in on observed We're end-of-life admissions transportation from improvement clinical learning

is assisted network, this have have able of quality dependent providers facilities, compliance, our the living One progress providers to and is our quality, and administered network. our the and provided performing By and cooperation, in these on learnings management general how administrative their quality is our financial we on our for we expenses. ranking have our settings. cost focus key ensure seeing compliance the access that facilities our care given ultimate our of quality nursing in around performance increased we're narrowing participants accountability the higher-performing facilities With dimensions our community.We're in housing value and and mind, in of highest the by of supportive on of and to care, the of in network similar

approximately quarter, in $X.X million. This G&A a saw sequential we decrease of

we're will help our to through instance first revenue we're now cost development.Lastly, expand overall we structure the portfolio as pleased that ongoing growth with across operational and new center existing our PACE-specific to continue report enrollment to Importantly, ever of Epic. entire right-size center

compliance EMR investment staff operational this chief and a As for a and efficiency, satisfaction was we've of our view we clinical dollars discussed and going increased organization, time the previously, productivity, enabler forward. significant in new as

this where take we are seeing improving every it We colleagues on achieve again to for day. quarter, summary, we're to benefits the working and in already reality long-term our a to participants enhanced remind both business my that near-term both our that to first single in into time quarterly improved Investor wonderful nationally terms and newer to X,XXX remain February York, we're believe in on.And expected competitive more translate we believe financial who and make program Day I on want well want are unlocking the XX performance. are turn I be value performance.Finally, will as on to Ben that, While will adoption walk provide will with of operational the through to marketplace, the hosting over excited InnovAge differentiation some and as actions audience in every wins we journey tirelessly New I'll our markets, it clinical the financial are the full early details focused we efficiencies.In and thank it

Benjamin Adams

Thank spring. you, Today, insight fiscal financial and into the XXXX our year our some fiscal are quarter trends reaffirmation provide performance, we a heading some guidance of seeing of Patrick. XXXX I'll the from second into highlights some

ended progress and year.Starting second December internal the margin as While it to our with X,XXX improvement with we in pleased centers made is are continue initiatives, census, approximately early fiscal year this XX, the XX participants XXXX. to still our XXXX track we of of we fiscal with far and targets so have quarter

care, XX,XXX outside the We second to months the quarter, due months to to quarter, member X% quarter a onetime $XXX.X the in the X.X% increased capitation partially well sequential as per X.X% payment million expense. the provider with in offset to cost was Medicare as as in supplies an to by margin, rate, months. also the in in true-up decrease of XXXX, was repairs a compared million $XXX the and first months.Cost of in increase first quarter.Total during quarter. by and both by excluding reduction increase X.X% and revenue participant FTEs maintenance, ending utilization, primarily second in annual by offset of the in second to was increases. partially was define wage decrease member a increase including to increase reported increase decrease increase quarter. lower months external winter to and fleet first Center-level for increase care, member to costs first the compared costs contribution uncommon This $XX.X contract per facility an census expense, increase transportation, primarily in in we coupled the second amortization, by million participant. fiscal vehicle an not total compared provider compared per due of is a first regular was recorded cost incurred nursing utilization, the cycle a of in depreciation and offset lower driven an amortization, The offset in and to million less due The revenue compared permanent was depreciation participant, inpatient by per rate costs $XX.X The decrease which member driven increase million decreased the quarter.We quarter and the which by driven fuel cost cost participant a months, partially The quarter. member in partially reduction $XX.X external cost by quarter an excluding in

million and our a decrease launched The first reduction associated costs legal, decrease November implementation declined with marketing administrative costs $XX.X to new compared expense to center-level Epic. in we decreased third-party in and revenue, the related approximately increase $XX an increase contribution an center marketing to shares depreciation development the We of recorded a inclusive our average quarter was million compared $X.X expenses, million on in quarter. percentage quarter XX.X% diluted in for in and as loss net in Epic, the and first the spend was and offset quarter. a taxes, of to million improvement basis.Adjusted first basis, debt.Net of to amortization, EBITDA, by quarter. novo of prior quality compared interest due increased per and IT count million decrease to and and XXX.X margin in the and de a M&A to approximately fully $X.XX $XXX,XXX earnings primarily net was and was or by our and the primarily for consulting on The compared a fees, million, centers.Sales in quarter. reflecting loss campaign financial the we million, license to increased to first weighted headcount. As was net which increase The of loss a general share was marketing to XX.X% share $X.X of $X.X compared adding increased expense other Corporate, to costs bad due loss, quarter, reporting both the expense, million $X.X calculate basic non-recurring partially diluted both our exceptional basic and an $X.X was

in in we $X.X debt quarter quarter million lease adjusted second margin to under sheet, for had Florida. and December was million investments. total on acquisition the balance sheet, $X.X our We and to second our PACE, Our our finance of and plus which Concerto EBITDA short-term $XX.X million debt $XX.X quarter.De loan occurred X.X% the quarter compares ended million in first de commitments. balance for of cash first in to were the senior representing novo equivalents, losses the losses million to quarter.Turning plus centers cash X, the compared other X.X% novo the with obligations This in $XX.X on our in term and related secured

member X,XXX participants acquisition. XX,XXX Based guidance, be purchase million the For to months million, range we Concerto had PACE.We the for which between year negative today, census includes of of XX,XXX. to excluding XXXX the we and expenditures, the XXXX the reaffirming ending expect on to cash operations PACE our second as in price quarter, fiscal fiscal and information of $X.X our X,XXX now from we are of and flow recorded capital $X.X be Concerto of

the revenue of total in in million to range million. million and projecting EBITDA the adjusted $XXX million are $XXX of to $XX $XX We range

we Concerto fiscal look want reiterate believe range, inclusive Finally, be is Patrick's recent for we to closing, to $XX continuing in as anticipate near-term we comments of value, are to at that de XXXX acquisition our the drive again February. quarter. to PACE.In novo I $XX of Day remain business million to losses the providing of will longer-term our million XXth which business the improvements details of all make forward We and Investor aspects every more upcoming to on the on we and focused

Please We will week.Operator, the open the later provide prepared this details call concludes our remarks. that on questions. for event

Operator

Jason Citi. Our Cassorla come question [Operator from first the Instructions] will from line of

Jason Cassorla

prepared discussed Ben, of help this, I as or Apologies to missed a through back you I that, related strong a of in size fruits ramp true-up of to half initiatives Maybe you and EBITDA just EBITDA in rest the talked nuances. in open your true-up? that your come clinical for remarks, the about quarter. noted you're Great. XXXX MA but of the you guess thinking context, walk value in all that But you enrollment fruition. can Medicare And previously if period kind as suggested seasonality well? other can you've about progression how

Benjamin Adams

Sure, nice and to hear your voice.

a are So, things that embedded question. of couple in

first are our track on that year. The the guidance that earlier we for we is in issued

course of guidance. us puts and we're So reaffirming some over get say, the year, that I'd takes not there unexpectedly, are the there. our

a quarter, the extra factor. of a with a to adjustment, Medicare it which a meaningful a COVID-related true-up we of rate us the terms we to was So final, in that. to that in terms received CMS XXXX, And That time of submitting second had final quarter. gave that in came related that sort increase what in through rates little and it do was and fact had was

to the or disclosed a half into in forecast And going the into came in the good modest that items, factor because in We back individual budget was play each in other. that gave broken chose an large the a to reduction the a numbers course haven't we're or forward. versus there had here a But sort rates the of back not to the going of us specifically, in reduction year. year.Another of break in factors boost offset going number of those part half that ones. that of was out We unexpected extent, California, just the a increase the X into That year. out which see are go we

as And the us is further. these And year, that destination to the guidance say go seasonal a about as things on I the so, year.A for earlier of the end But us out. path to to enrollment. guidance of But the confident that us heading. know, component components other to reaffirming together, the that at things that indicated I getting as up with have look us enrollment. together, we'll us couple Patrick, different where being particular But one towards come quite towards we affects There in puts the we of back and on in on going But we get ending factors quarter to into that slightly by bit up want all little first we're comment which with large, a we're we're destination. we quarter, of year. think and would any

Patrick Blair

you. hear good from Jason, to

as of things may XXXX of risk pillars it for scores. deadline us is, payer sort X I calendar had capabilities. that one to the And of submission highlighting risk as building add relates CMS Just adjustment recall extended a -- of maybe XXXX Ben year core what to said probably our out you accuracy,

issue on probably conservative the a little bit our through and And gone like a as -- we a us some and conservative an were we've first given that, so, team was accrual. time it time, it it gave on extra really

to the what's cetera. our to from I time takes. puts nice try we hit that period And our sort And of And growth, that's suggesting got to And a coming Ben's sense getting later that. this think think in our Medicare or some that that in seen sort does we've we'll seasonality, than dialing direct-to-consumer to thing to delayed parties hit implementation ever future, think Advantage out with all we're some call what get market what impact that kind rolled to any significantly were of then annual ancillary is, means the And I I services. helping Ben hoping on going we're period related for CDI a on our I I'm but of until those it very delays, job business. hitting There starting election belt opportunity the I where doesn't better And going year. our accrual.And we a And is us estimates understanding how that fiscal to can better -- compare produce what is we've complexity that's example, of think had in fairly think specific, rates on and markets. we're get better for do a like I was just of third of and QX, and line contract. of by risk -- a well. saw guidance changes. that our reasons, on year. have understand a year of And point for marketing is there's frenetic are then that we we us the et lot accuracy hitting some to ] I it's as to that forecasting to optimize to CDI we we'll thought. was result, kind to won't cycles, going it and we paying were above because be on things does think the successful I in Ben the of negotiating as all more the really under that full And relevant to a see out We seasonality impact the probably see loud our a underclubbed and [ to stick and

Benjamin Adams

that later months little recognize CDI the longer it's really that a to important contract And Yes. targeted always negotiate. a of the point, implement But it dollar because get just to savings took that and I of get. to of think intended one couple going we're started to we amount

Jason Cassorla

it. Got

Medicaid very about side, just moving we are a you rate development the developing state helpful. All rate How just PMPM the other Okay. Appreciate mid material pieces development? rate it. that California. year helpful. into calendar right? then, expect I'm XXXX half kind the to the backdrop. of sort winding the wanted about And just MA kind broadly the thinking FMAP suggest to of changes is the Maybe equation I on ask year point MA proposed of should side around on with think and enhanced I if would now on partners on How any Perhaps around fiscal how moving curious be for front. down? you're would year guess, the the XXXX another second component, tough discussions rate this of rate right, that of

Patrick Blair

start. clean maybe I'll Ben, up. me

probably focused on Medicaid think in that's a early fiscal to rates, next and probably I bit look going it's like still too know what year. to we're more the

InnovAge-specific in I had out not driver we below rate of PACE of Ben and that of one be I a buildup. that the part, by came their terms would Lots in in impact. think an use that California, parts, targeted. moving notable an in pointed notable but qualify what that would periods we think saying of industry states as what time is, impact

little if claims of time, perspective. predicting rate related in process actual reflective experience the set of I further the from get a that you bit future the lot There's passage we from still impacts a to of a is COVID. data experiences of the think noise, With setting more COVID, the will, lingering the

think, staying we're a fiscal [ year. So only California ] on is, I

back of half year.Ben, an to this unexpected fiscal add? in So impact it's anything the having

Benjamin Adams

No, I right. absolutely think it's

Jason Cassorla

there's revenue color cash If one, just just there? squeeze one to, related headwind that follow you help quickly flow. year-to-date. what a million in on last if was to I It wanted could I there's Okay. $XX looks any like up reconcile on Can deferred Understood.

Benjamin Adams

Yes. relative to of the revenue to relates falls day it first weekend. relates and The the deferred Medicare to really month how a

So first what the by happens a if or of Sunday, month, in reimbursements days. Friday in on falls -- is, the if the month will, prior month, you of essentially the couple like you so first well, if Medicare happens if receive payments of you due what are the will, we it is on beforehand, a the

following a of account that. occurs, of gets falls that a for the in weekday, set to up cleaned a sudden, that first adjust up the revenue month when So all on quarter. we a When deferred

that deferred the of the you month or when weekend the fall payment? that as a it So on does about not? think of Medicare impact how revenue payment, And first think timing about the does

Operator

will And Haase line come William from our the Blair. Jared from of question next

Jared Haase

of hoping sort through first census expectations the ramp terms here, facility novo one from little facility? the terms a in bit Tampa us little And in future de ramp obviously, de I Congrats of the just and of buy that think a growth. equation terms a the May a profitability how versus on maybe walk in [ question novo the how could about bit you of with talk sort a getting both little profitability build to of of just a or us, your related maybe in remind perception opportunity, informs Concerto acquisition for ], kind you sort just The what open. of of bit. we're dig Could on into are ramp

Benjamin Adams

I here. Yes. Why in comments will off don't jump I'll start Sure. and then it with here, Patrick some --

great congrats. a thanks all, about the for of was for us. We're excited transaction It really it. First

were a of to X one you the Concerto and is it small acquisition, There's facilities. is as If in Crenshaw, really which running, up but which think very I guess think about census. it's

to that of them so open, generally, But will us is de look right, when the it's probably, basically X about the in of we before like some time it, think which point center up hit a on in take them to think we is first census get quickly to to possible. a we get the that's novo that novos the to contributors be de-risked maturity. folks. they it watch that constructed XX we But fill flow center-level at call quarters up quarters, positive take as we because as that order as almost because acquisition, of especially that it X approval as carefully then, our the, contribution to obviously beyond the Bakersfield novo. really, cash really margin. And think we a a want where essentially I de us de then, impact, that one, is will And it So way awaiting basically fully de-risked think

strategic acquisitions, through to And way about analysis our so, forecasting out de we do model do our the de when kind want of or we we a hybrid we we or and That's novos in case, want go do do business. do this to novo. the

Patrick Blair

Yes. I'll the add, I mentioned just Investor February Day on XX.

business. Day the of sort One novo de and of Investor to up of to economics unit the is more the at goals clarity ramp- bring our

that. do we'll So

the we think, It's we've to of there's different There's about In grand X, and got on market a we great March terms different I with say novo, managed of a that would market. feel ground, de Tampa lot probably X team for not opening alternatives. good we've big say, bad density, what Orlando. got is pretty on scheduled, and expect -- each a in, is -- care the offering, proxy we our opportunity, in There's landscape, But a we or accomplish different excuse I me. can think a Sacramento and different. what

so And that was in just really while Sacramento not you opportunity the as it a not a new about sanctioned about we're and was, good to after community, know, product it just feeling a growth it. we're to feeling also time we've market -- as great it's terms long got introduce of line, good operational. And

the with is So really the ramp. how pleased a And as market is ways, we in we're there. many about doing Sacramento team new think

Jared Haase

a that's I the trends. little for wanted super That's of helpful. some state theme headwind enrollment delays up -- follow think maybe to creating then, of I Okay. bit of a And administrative the level at and kind

you in sort think of guys that identified of that's curious, I participant, quarters. in there terms have largely working and over? your hands? something out process them maybe that families, up it helping is some with Or speed time? Is control through that of any internally an to I of are once up maybe their with anything you potential able come was that eligible is do you've get them, that recent working

Patrick Blair

set a I there as of are things the there question. great it of to When can do locus delays Well, are access same and ask the we able processing and outside in that keep tend need a are of immediate control, to the our At achieve of them question that the that sort to with them team make they certainly enrollment is end still and PACE services the of and will right we're administrative aware think individuals that individual that we confident time, looking the feel to be are process certainly population, help with of worth and their do family in not, the And the the we kind more and are delays same occur. So rather of get need. funnel the see the we're access to of individuals very this vulnerable it's is of family their times solution dealing than wait? that engage expectations when going most and services. and well. to

can in so And at of the delays people applications processing with making choices. alternative and the state do result

Sometimes going back the state fee-for-service into it's program.

have But work, closely in there. in with us can they It's We're to great subcontractors that this could our that something do in Sometimes it. competitor pursue is definitely been with and often complexity California, a states it best to working -- it a if use for it a the manage. that manage. belief territory, our for Medicare be partners. option of or it's the we adds an The on Advantage states reality very just there's layer they PACE could be maybe same

Jared Haase

appreciate has context of years Okay. just new question. InnovAge's just to specifics communicating sounded during sort changed how in love And message or Makes like sneak the hear in one there. that's the any Would maybe unique in just maybe It terms campaign marketing sense. of prior about you're quarter. of you more services. terms launched anything the I'll And a from

Patrick Blair

Yes.

Another sharing get latest at will, creative, great our our TV seen for so at people Day, if they you our some it be sense and work. Investor broadcast better if question. least We'll of haven't a

socialization, lot the that to enjoy PACE is do meet see trying friends, There to of one think of that I is as PACE and that large a place senior vulnerable. individuals the only we're nutritional absolute for address qualify a most PACE that's for population. are deficits, new things a to that dispel

And home broad to so, real I use senior the PACE resource a segment to think drive to frail our we've that community. is a tried of message a creative

to thing family that's second directly is, more new a maybe think members. we're I appeal trying to

messaging as one. I they think our I PACE their find many a cases, eldest is the to loved do to much in family for members daughter. appeal starting as them for And think solution

example. big a as will that's Our an us data tell maker, that decision

to segment. lot We've successful that. been appeal to And market of And got creative. trying broader feedback so, I think just we're a on at a great we've think I the

Jared Haase

and lot a hop it sense. Makes the ahead of I'll Perfect. in queue. leave back go and there

Operator

the Instructions] Jamie line [Operator Sachs. question Our next Goldman from will from come Perse of

Jamie Perse

starting broader patients of terms the on rebuild versus mix the think provide patient broadly. rebuild? Maybe Colorado patient the getting? trends can balance detail between on the that a with just you're Colorado in there just mix just census you some But and facility you community and surprises I little enrollment mentioned trends, there more any census

Patrick Blair

going say I Jamie, everything Colorado. we in that would hoped is as I and think expected

would side I some might And I been we're pent-up say what pent-up reflective traditional maybe was of of have on demand participant that think less a the demand. other mix. that,

I At think we're think enrollments on best time, least are at that company's the period the history. back same that. of the our I sort in other side the to of gross

growth a still we're that the it's we're but of really So where that. we the all in doing on getting bit in larger set and of processed sort right was it's for Colorado, company through it. responsible track closely things. working on At seeing is time, than an probably issue, same what's a least coming it a about let's I And example out to of the the the of market demand are back ourselves, sanctions, leading the goal to get feeling And we near at funnel. think term, kind good

Jamie Perse

the be those in should think rolling external we impacted Okay. come quarter, off? provider then, talked way that, of as that as And comments, costs to seasonality then, fiscal Any your costs quarter? of inpatient third about on numbers in just down? you in the that modeling from And inpatient about to how perspective a typical What's we some the just seasonality terms how quarter. put

Patrick Blair

quarter actually PACE for would of probably quarter period, say now a going seasonality Advantage. Medicare versus We're consideration of if the through relevance kind the us is to to First, the third the election second people the people really seasonality leave think going I that day, are annual hit through because a the decided sort it's appropriate don't lens the that more of and just we seeing have for I could we numbers. I see confidence to the us business. be on think we'll the the day, cycle seasonality And next information of One in muted. what's gives that yet something right good contrary. the read see

of... think I around right anything so, experience out exactly it's you what's the guidance terms to would to we're going that.Ben, some to add And real in seasonality. trying still take offer figure And time

Benjamin Adams

No.

not really on I I quarter-by-quarter providing guidance half a tell census would that you was the any member really about geared for year. And I how of do I think guess your part second basis. and I think the question, think, back of towards the we're months

unchanged terms the we X them the half take how expectation be from the I just we our now put perform back with articulated. the are of seasonality in think enrollment months If on tends those data enrollment, about a guidance QX. of for QX of if being which come related that up and But think to and then, and you member a can where originally, lower Patrick any targets in little pieces reasons for there's third it's where really we were got the for information, probably together over bit You've year. to quarter, might reasonable you

Jamie Perse

one for last then, margin progression. Okay. maybe me gross just longer-term on quick And

How COGS that margin or different over lines. in rebuilding of level to the broadly in as that talked rebuilding that months? You've and confidence Any next flag XX areas the feeling ahead of about XX maybe blocks behind you expectations recovery? past being about are with between your the building you'd

Patrick Blair

about I question. X in. let business. Great think when start across I'll weigh in it dimensions think Ben -- I about think I and margin, Yes. would to beginning the we're

then, additional market, and of compliance but that and and running we're to overall portfolio. other to margin grow, of that's are over long-term that investment, staff to as quality not contribution is operating salaries, I on going our the do technology our above I we're to fortify we think get And model, think to natural time the as we've inclusive there's Epic and over the of the corporate of that XX%, and et investments made we G&A, of in And heavier the last across the want how this -- first priority I year. little as adjusted center-level our it it's high-single-digit, those achieve wages cetera. because is healthcare we've targets, can fortified consideration the And a because factors But we think on only sort more are think dealing different a benefits continue adjusted we margin target. a because little And we our hired a organizations EBITDA EBITDA. have low-double-digit well part inclusive around before, talked next we inflationary the substantially of could believe we've more composition and that with. about achieved leverage scale

down further anything focused confident, of as on leading on very stage, add? So achievable at indicator P&L.Ben, CLCM this we're think feeling but I the we're of that to sort what's the

Benjamin Adams

No.

I think captured perfect. you it

Jamie Perse

Appreciate it.

Operator

this Patrick it to I'm not for like closing time. back turn Blair any to questions any at remarks. further showing I'd

Patrick Blair

more about appreciate Well, progress. our the hear time and of dial those took in to you who

with operating, I XX. and business And that transform share the to the is to and every answer you think than detail with everything look the reintroduce really We're would and company. that to a improving more as a quarter. how face person like is questions your just transparency. myself we important introduce the company, bit team and as to as of and as on to sort count second recorded run is we to trying with leadership then, is I'll on and you that's business to transparent at just I February just And larger you. the possible I how be team. on you that a in understand there fantastic is encourage excited company possible to these provide us story give to can help everyone or the commitment here we're think information to to We're And what to much the extremely deeper Investor close we're on you through much with opened. think the whether able business a I Delivering Day you I can as the call, provide us, join goal a calls

Operator

in participation the does conference. for you This program. conclude Thank today's

now disconnect. a great Everyone, have You may day.

InnovAge Holding (INNV) 6 Feb 242024 Q2 Earnings call transcript