INNV - InnovAge pulls fiscal 2022 guidance after CMS sanctions on enrollment

InnovAge Holding (NASDAQ:INNV) has lost ~32.2% in the pre-market after announcing that the Centers for Medicare and Medicaid Services (CMS) has sanctioned its Colorado centers based on findings identified in an audit. Due to the deficiencies detected early this year through a focused audit, CMS has asked the company to suspend new enrollments. Its final results have not yet been disclosed to the company.CMS has also notified that the suspension will be in place until the company remedies the issues in question. Meanwhile, the Colorado Department of Health Care Policy and Financing (HCPF) has verbally informed InnovAge (INNV) that it is also issuing sanctions. Written communication that will include the deficiencies specific to Medicaid is expected on Dec. 23, 2021. As a result of the suspension of enrollments, InnovAge (INNV) says it is withdrawing the guidance for fiscal 2022.

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InnovAge pulls fiscal 2022 guidance after CMS sanctions on enrollment