InnovAge Holding Corp (NASDAQ:INNV) saw its stock drop sharply amid suspicion of its auditing practices.
The Centers for Medicare and Medicaid Services (CMS) has determined to suspend new enrollments at InnovAge’s Colorado centers based on deficiencies detected in an audit.
The audit was conducted earlier this year, and the final results have not yet been disclosed to the Company.
CMS identified the following deficiencies, including a failure: To provide all Medicare and Medicaid covered services and other services determined necessary by the interdisciplinary team (IDT); To provide care that meets the needs of each participant across all care settings, 24 hours a day, every day of the year; To ensure accessible and adequate services.
CMS indicated that the suspension would remain in effect until it determines that the Company has remedied such deficiencies to its satisfaction.
The Colorado Department of Health Care Policy and Financing (HCPF) has verbally communicated that they are also issuing sanctions in conjunction with CMS and will provide a written communication, identifying the deficiencies specific to Medicaid.
As a result of the enrollment freeze, the Company is withdrawing FY22 guidance.
In its latest earnings release, the Company anticipated sales of $712 million - $725 million and adjusted EBITDA of $60 million - $72 million.
INNV shares are down $4.55, or 55%, to $3.71, soon after the opening Thursday.
