InnovAge’s conversion is in public’s interest
Our greatest hope — for ourselves and our loved ones — is to live in a manner worthy of our human dignity, and to spend our final days in peace and comfort. For more than three decades, InnovAge has helped redefine aging in Colorado to enable our most frail and elderly to age in place, independently, in their own homes with their families and not in nursing homes.
Thirty years ago, InnovAge opened its doors as a small nonprofit organization delivering Program for All-inclusive Care of the Elderly (PACE) services. Today, InnovAge serves more than 29,000 individuals annually and provides wraparound health care services and a safe, stimulating environment for more than 2,400 of our frail and elderly neighbors.
We are a graying population and the demand for quality senior services is increasing. The U.S. senior population is expected to grow to 132 million by 2030. In Colorado alone, we expect a 150 percent increase in seniors over the age of 65.
Recently, the Center for Medicare and Medicaid Services concluded a multi-year study and determined that the unique PACE services can be delivered by a forprofit organization with the same levels of quality, care and expense as a nonprofit. The InnovAge board recognized that it will not be possible to meet the rising demand for its services when access to capital is constrained. A new care facility can cost as much as $20 million. Fueled by the need to help our loved ones age at home with dignity, InnovAge developed a forward-looking strategy to meet its mission, a strategy similar to that of other health care institutions facing similar challenges.
InnovAge submitted a detailed plan to the Colorado attorney general’s office to transition its current nonprofit organizations to for-profit entities. The transition will result in two critical elements: an infusion of capital to help preserve and enhance InnovAge’s work caring for the frail elderly and the creation of a new charitable foundation dedicated exclusively to the care of this population.
Attorney General Cynthia Coffman is charged with the responsibility of ensuring that the mission of the nonprofit is continued, that the taxpayers are receiving fair value for the assets of the nonprofit and the public interest is being served by the conversion.
Whether as a nonprofit or a for-profit organization, all PACE programs are highly regulated with the rigorous oversight of both the state and federal government. PACE programs undergo regular state and federal audits and are responsible for monthly and quarterly reporting. Accountability for the delivery of quality, professional and compassionate services will be expected of InnovAge regardless of its organizational status.
As part of the conversion process, InnovAge secured a thorough valuation of the business, which was included in the plan of conversion submitted to the attorney general and posted on her website. As part of her responsibility, Coffman is reviewing that valuation to reach an independent opinion as to whether the taxpayers are receiving a fair price for the conversion of charitable assets.
Proceeds from disposition of the charitable assets will be delivered to a foundation — to be known as the NextFifty Initiative — to continue the mission of service to the frail and elderly population. After a short period of transition, the NextFifty Initiative will be fully independent and a partner with Colorado charitable foundations that were born out of a similar transitional process.
Coffman established an open and transparent process so the Colorado public can understand all the aspects and implications of the conversion process. The plan of conversion and comments are readily available on the AG’s website. Coffman personally conducted a public hearing, which was well attended, and everyone had an opportunity to share their perspective.
We trust that with the attorney general’s oversight, the conversion will proceed in the public interest and InnovAge’s commitment to the frail and elderly in our state will grow and flourish. Wendell Pryor and Theresa Donahue are members of the InnovAge Foundation Board of Directors. Pryor is the board’s chair.