By Michael Dabaie

InnovAge Holding Corp. said the Centers for Medicare and Medicaid Services has sanctioned the company's Colorado centers based on deficiencies detected in a focused audit.

The healthcare company said that on Wednesday it was notified that CMS had determined to suspend new enrollments at the company's Colorado centers based on deficiencies detected in an audit conducted earlier this year. InnovAge said the final results of the audit haven't yet been disclosed to the company.

CMS identified deficiencies including a failure to provide all Medicare and Medicaid covered services, as well as other services determined necessary by the interdisciplinary team and to provide care that meets the needs of each participant across all care settings, 24 hours a day, every day of the year, according to InnovAge.

CMS-identified deficiencies also included: failure to ensure accessible and adequate services to meet the needs of the company's participants, failure of the IDT to coordinate 24-hour care delivery and to remain alert to pertinent information from other team members, participants, and caregivers; and failure of InnovAge Colorado's primary care providers to manage their participants' medical situations and oversee their participants' use of medical specialists, the company said.

CMS indicated that the suspension would remain in effect until it determines that the company has remedied the deficiencies to its satisfaction.

The Colorado Department of Health Care Policy and Financing verbally communicated that they are also issuing sanctions in conjunction with CMS and will provide written communication on Thursday identifying the deficiencies specific to Medicaid.

The company said it continues to work with CMS and HCPF to respond to the sanctions and is evaluating its options with regard to its rights to appeal the sanctions.

As a result of the enrollment freeze, the company is withdrawing fiscal year 2022 guidance.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

12-23-21 0748ET