InnovAge Holding Corp. reported its financial results for the three months ended September 30, 2024, showing notable improvements in revenue and reduced net losses compared to the same period in the previous year. Total revenues increased to $205.1 million, a 12.4% rise from $182.5 million in 2023. This growth was primarily driven by a 12.4% increase in capitation revenue, which reached $204.8 million, up from $182.2 million. The increase in capitation revenue was attributed to a 4.3% annual rise in Medicaid capitation rates and a 0.8% increase in Medicare rates, alongside a 9.4% growth in member months.
Despite the revenue growth, total expenses also rose to $210.0 million from $193.2 million, leading to an operating loss of $4.9 million, an improvement from the $10.7 million loss reported in the same quarter of 2023. The net loss for the quarter was $5.7 million, significantly reduced from $11.0 million a year earlier. The net loss attributable to InnovAge was $4.9 million, down from $10.3 million in the prior year, resulting in a basic net loss per share of $0.04, improved from $0.08.
The company’s cash and cash equivalents decreased to $39.0 million as of September 30, 2024, down from $56.9 million at the end of June 2024, primarily due to timing of cash receipts and share repurchase activities. InnovAge repurchased approximately $4.8 million worth of its common stock during the quarter.
InnovAge continues to expand its operations, serving approximately 7,210 PACE participants across 20 centers in multiple states. The company completed the acquisition of ConcertoCare PACE of Bakersfield and ConcertoHealth PACE of Los Angeles for $23.9 million in December 2023, which contributed to its operational results but was not significant to overall performance.
The company faced challenges in hiring and wage pressures due to increased demand for healthcare services, particularly among the aging population. However, it has implemented clinical and operational initiatives aimed at reducing costs and improving efficiency. The healthcare sector's regulatory environment remains complex, with ongoing investigations related to Medicaid billing practices and compliance issues.
Overall, InnovAge's financial performance reflects a strategic focus on growth through capitation revenue, while managing operational costs and navigating regulatory challenges.
About InnovAge Holding Corp.
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