The CEO, who played a key role in the dramatic expansion of government-funded home and community-based frail elderly care, resigned from the company she founded due to growing regulatory concerns. Did.
Maureen Hewitt has resigned as Chief Executive Officer of InnovAge Holding INNV.
Starting January 1, the Denver-based company announced on Monday. InnovAge is the largest provider of all-inclusive care programs (PACE) for the elderly, a service funded by Medicare and Medicaid, designed to meet all medical needs of the vulnerable elderly and keep them away from nursing homes. I am.
Leadership turmoil arises in a regulatory recession that could curb the rapid growth of Innov Age. In late December, federal and state regulators suspended the registration of new Colorado Medicare and Medicaid beneficiaries for failing to provide medically required services to Colorado PACE participants. In Colorado, InnovAge failed to schedule or delay service to patients, expert diagnosis and follow-up of recommendations. In particular, the Medicare and Medicaid Service Center said in a letter to Hewitt in December. After the registration was frozen, InnovAge withdrew its guidance for the 2022 fiscal year, after which its shares fell by approximately 40%.
Regulatory findings in Colorado reflect concerns raised by former InnovAge employees and patient advocates and reported by MarketWatch in November. InnovAge participants, including some of the most vulnerable and medically complex older people, often face long-standing problems with medical appointments, difficulty accessing professional care, and prescription delivery. Former employees and others familiar with the company told MarketWatch.
The day after the MarketWatch article was published, InnovAge announced that it had appointed Patrick Blair, a former home health care executive, as president. Blair succeeded Hewitt and became CEO and president, the company announced on Monday. Hewitt has also left Innov Age’s board of directors.
Regulatory issues arise as industry groups drive the expansion of home-based services.
Hewitt, who became CEO of InnovAge in 2006, played a vital role in transforming InnovAge from a humble nonprofit to a for-profit company with a Wall Street growth story. With the support of private equity, InnovAge has seen a rapid increase in registration in recent years and has a prominent board of directors, including two former Medicare executives.
However, shortly after the company’s initial public offering in March 2021, regulatory issues such as the September suspension of registration in InnovAge’s Sakurament occurred, based on issues similar to those pointed out by Colorado regulators. did. Medicare and Medicaid pay a fixed monthly fee to PACE providers to cover their participants’ medical needs, so providers can benefit from disregarding patient care, commercial PACE critics say. .. InnovAge states that this approach improves the quality of care while reducing the abuse of costly care settings.
InnovAge’s regulatory issues arise as some lawmakers and industry groups are pushing to further expand home and community-based services such as PACE to help keep older people away from nursing homes. .. More than 144,000 nursing home residents and staff have died in COVID-19.
InnovAge is working with the CMS and the Colorado Department of Health Policy and Finance to respond to the suspension of registration and evaluate options for the right to sue sanctions, the company said in late December.
“COVID has presented its own challenges to all providers, including PACE,” Blair said in a statement. “Still, it’s a great care model. I know we can deal with the issues presented and return to a very constructive partnership with the California and Colorado programs.”
“I am very proud of what we have achieved with Innov Age,” Hewitt said in a statement. “I think PACE is the best way to care for low-income seniors. In the 15 years I was privileged to lead the company, it was tremendous for thousands of participants and their families. I know I did no work. ”
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