InnovAge Holding Corp (NASDAQ: INNV) is a healthcare company that operates Program of All-inclusive Care for the Elderly (PACE) centers serving frail, dual-eligible seniors who qualify for nursing home-level care but prefer to live at home. Revenue comes from per-member-per-month capitation payments from Medicare and Medicaid, which transfer full financial risk for each participant's care to InnovAge. The company delivers coordinated medical and social services through community-based centers using Interdisciplinary Care Teams that include physicians, nurses, social workers, therapists, and transportation workers. InnovAge expanded into pharmacy services in January 2025 through the acquisition of certain pharmacy assets from TRHC. Since FY2019, InnovAge has acquired four PACE organizations covering eight operational centers. The company is headquartered in the United States and trades on the Nasdaq Global Select Market. Reductions to the Medicaid portion of PACE capitation rates under the One Big Beautiful Bill Act, enacted as of the FY2025 10-K filing date of September 9, 2025, present a headwind to addressable market size.

Revenue model

Per-member-per-month capitation payments from Medicare and Medicaid. InnovAge accepts full financial risk for all covered healthcare services for each enrolled participant, meaning revenue is fixed per participant while cost of care is variable. Cost of care includes IDT staff salaries, participant transportation, medical supplies, occupancy, and insurance.

Products and services

PACE (Program of All-inclusive Care for the Elderly) center-based care delivery using the InnovAge Platform, which consists of Interdisciplinary Care Teams and a community-based care model. Services include primary and specialty medical care, physical and occupational therapy, social services, transportation, and nutritional support. As of January 2025, the company also operates a pharmacy subsidiary following acquisition of pharmacy assets from TRHC.

Customers and end markets

Frail, dual-eligible seniors who are enrolled in both Medicare and Medicaid and meet nursing home level-of-care criteria. The National PACE Association reported total U.S. PACE enrollment data as of June 2025. End-market demand is driven by the aging U.S. population, high healthcare spending on nursing facility care (projected at approximately $247.1 billion in 2025 per CMS Office of the Actuary), and policy shifts away from fee-for-service toward value-based care.

Value-chain role

Direct care provider and risk-bearing entity. InnovAge owns and operates PACE centers, employs clinical and social care staff, coordinates all participant healthcare services, and bears full capitation risk. The company also pursues tuck-in acquisitions and joint ventures, such as a partnership with Orlando Health, to expand into new markets.

Geographic exposure

United States. The company operates across multiple states, with centers including Sacramento and San Bernardino in California, where new de novo openings are currently precluded pending remediation reviews by the California Department of Health Care Services (as of the FY2025 10-K filing date of September 9, 2025). Acquisitions since FY2019 have expanded the platform into one new state and five new markets.

Source: SEC 10-K, filed 2025-09-09

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