Cano Health is in an awkward spot as the result of resignations among its board members and leadership changes, with both CVS and Humana showing interest in purchasing it; CVS holds first right of refusal as per an agreement struck last year, but Humana would like first refusal based on a deal inked earlier.
Cano operates primary care centers and supports affiliated medical practices across Florida, Texas, Nevada, California, Illinois, and Puerto Rico.
Locations
Cano Health operates medical centers that specialize in primary care medical services. The company also provides pharmacy and dental benefits, empowering its patients to manage their health using technology at its healthcare centers. CanoPanorama, their technology platform, allows healthcare providers at these medical centers to view all patient data in one portal to identify gaps in care quickly. Founded in 2009 and based in Miami, Florida, Cano Health has received several accolades, including the Health Leaders Media Innovator award.
Cano Health is a premier value-based primary care provider, offering comprehensive virtual care, home services, transportation, telemedicine, and 24/7 urgent line services to over 112,000 members through medical centers in Florida, Texas, Nevada, and Puerto Rico. The company boasts an established national presence serving members from Florida through Texas to Nevada to Puerto Rico.
Cano Health provides various wellness programs to assist patients in improving their physical and mental well-being, including vascular medicine, arthritis therapy, pain management, weight management, and weight loss. With multiple locations throughout South Florida, Cano Health offers personalized assistance in improving one’s well-being.
A company is undertaking a strategic process and exploring options for selling its assets and has hired advisors to assist. However, it cannot predict when this process will conclude or whether a transaction will happen.
Cano Health recently announced an estimated second-quarter loss of $270.7 million, nearly 19 times larger than its profits from last year. Furthermore, Cano stated it might lack the sufficient cash flow to continue operations over the coming year – leading billionaire investor Barry Sternlicht to resign from their board and criticize the leadership team and stock price drops since then – falling below $1 per share on Friday alone.
Cano Health has long been on the radar for acquisition by larger firms like CVS and Walgreens. Their trustee resignation and internal boardroom drama come at a time when primary care companies draw significant interest from larger healthcare providers. Their business model centers around providing value-based care to Medicare Advantage recipients and senior commercial customers.
Services
Cano Health is a primary care provider offering medical centers, home services, transportation, telemedicine, and 24/7 urgent care to older adults. Their healthcare providers strive to deliver compassionate yet quality healthcare; Cano Health seeks to enhance lives by considering all aspects of an individual’s well-being as they age.
Cano’s net loss for the second quarter was $270.7 million, nearly 19 times greater than in the prior-year period. The Miami-based company blamed lower Medicare risk adjustment revenue being more than offset by an increase in operating loss. Furthermore, Cano expects to reduce expenses through consolidation efforts in Texas and Nevada, where more than half of their medical centers were closed to increase efficiency and further reduce costs.
The company serves the needs of older adults by offering integrated virtual care, ancillary services, home services, transportation, and telemedicine, allowing seniors to remain in their homes safely. They operate out of 172 medical centers throughout Florida, Texas, California, Illinois, New Mexico, and Puerto Rico, supporting primary care practices serving senior patients. They made headlines by going public through a SPAC deal backed by real estate investor Barry Sternlicht in 2020.
Cano’s losses deepened in 2022, and it took out a $150 million loan to stay afloat. Cash reserves fell below $101 million, warned of insufficient funds to support operations over the coming year; its shares dropped 50% during after-hours trading on Thursday alone.
Cano’s latest financial results reveal its efforts at finding a buyer for its assets and personnel. Advisors have been hired to assess interest in buying Cano, while offers for its assets have also been evaluated. Furthermore, about 700 employees (17% of its workforce) will be laid off between now and September, saving approximately $50 million each year in salary expenses for Cano. Furthermore, Cano intends to exit its operations in California, New Mexico, and Illinois by the fall of 2019 and Puerto Rico by January 2024.
Awards
This company is a premier value-based primary care delivery platform for seniors, operating medical centers in Florida, Texas, Nevada, and Puerto Rico. They provide innovative care management services, including telehealth, pharmacy home delivery, wellness programs, and high-risk/complex care management for high-risk members of their populations. In their centers, they also offer medical and dental services while their healthcare providers utilize CanoPanorama – their proprietary population health management technology – to deliver enhanced care for members.
Health Leaders Media honored our firm with its 2016 Innovator Award in Medicare Advantage for our work. The Collective awarded it with their Access to Care Initiative Award for older adults. In addition, the National Association of Primary Care awarded it its Patient-Centered Medical Home designation while we are accredited members of the AARP Age-Friendly Health Systems Program accreditation.
In a statement issued today by the company, they announced they had engaged advisers to conduct an exhaustive process designed to assess interest in either all or a substantial portion of the Company and pursue strategic growth objectives as planned. They further announced they will maintain core operations while reporting quarterly financial results.
The board has engaged Russell Reynolds Advisors as consultants to lead this process and is exploring all options, such as a potential sale of the Company. In addition, new independent directors may be appointed based on the experience and backgrounds of such individuals.
Cano Health is an established healthcare company founded in 2009 and operating medical centers for seniors throughout Florida, Texas, Nevada, and Puerto Rica, with approximately 35,000 members in these locations. Their healthcare providers use CanoPanorama – their proprietary population health management technology – to enhance care delivery and ensure member engagement while they also offer pharmacies and dental services within these centers.
Three stockholders representing 35% of the company have applied pressure to it through letters sent to shareholders by three stockholders who control a combined 35%. They demanded changes at the company, including asset sales. At its annual meeting held in June, Dr. Alan Muney and Kim Rivera were reelected.
Employees
Cano Health is a Miami-based healthcare company that operates medical centers and supports affiliated primary care practices across Florida, Puerto Rico, Texas, and Nevada. Cano also offers advanced population health management programs, including telehealth services, prescription home delivery programs, wellness initiatives, and the transition of care management, high-risk, and complex care management – boasting more than 700 employees with its headquarters in Miami, FL.
Cano Health has been experiencing internal turmoil ever since three board members, including billionaire investor Barry Sternlicht, resigned last month over criticism of its management and financial performance. Since then, Cano has undertaken a strategic review to streamline operations and reduce costs, with plans recently unveiled to consolidate operations in Texas and Nevada by closing half its centers – this move will result in over 50 job cuts but could save $50 million annually.
Cano Health has continued to suffer losses despite all of the drama encircling it. The company posted a net loss of $270.7 million for the second quarter, nearly 19 times greater than in 2017. Furthermore, earlier this month, the company indicated it may lack enough cash flow for operations next year.
Cano Health has announced in a press release that they have engaged advisors to evaluate interest in selling its assets. Although no clear timeline or buyer has yet been set, Cano remains committed to providing superior clinical results at a lower cost to its Medicare Advantage members.
Cano Health is a publicly traded healthcare company listed on the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX). As of August 1, 2023, Cano Health had a market cap of $5.1 billion, with shares trading below their industry average price. CVS Health and Amazon were reported as potential acquisition targets over the last year for Cano Health; in total, they own 141 medical centers across both states and Puerto Rico.
