InnovAge
Provides healthcare and supportive services to frail seniors through PACE programs.
PE-OWNED
Acquired by TPG Capital2017-04-03
What Made It Great
Comprehensive senior care through PACE model keeping elderly in communities
What PE Will Likely Do
Reduction in nursing staff, with RNs replaced by lower-cost LPNs or aides, leading to decreased quality of care for seniors in PACE programs
Aggressive billing practices, such as upcoding for higher-reimbursement procedures and diagnoses, leading to higher costs for patients and payers
Closure or consolidation of PACE centers, especially in less profitable rural areas, reducing access to comprehensive senior care services
Deferred maintenance and investment in PACE center facilities, leading to a decline in the physical environment and amenities for seniors
Expected Timeline
“0 to 6 months months”
Announcement of 'optimization' initiatives, potential leadership changes
“6 to 12 months months”
Staffing reductions and service reviews begin, with claims of 'efficiency' improvements
“12 to 24 months months”
Noticeable decline in service quality, with longer wait times and reduced attention to individual patient needs
“24 to 36 months months”
Potential closure of PACE centers, especially in rural areas, and quality scandals as issues come to light
“36+ months months”
Potential bankruptcy or fire sale to another operator, leaving seniors without access to the comprehensive care model
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Closely monitor any changes to the quality of care and services provided by InnovAge PACE centers, including staffing levels, facility conditions, and patient wait times
Advocate for regulatory oversight and patient protections to ensure that seniors in PACE programs continue to receive the comprehensive, high-quality care they need
Consider alternative care options or engage with patient advocacy groups if the quality of InnovAge's services declines significantly
Alternatives
Community-focused healthcare
Integrated managed care consortium