Cano Health Acquires University Health Care For $ 600 Million, Increases Adjusted EBITDA For 2021 To Over $ 100 Million

MIAMI, June 14, 2021 / PRNewswire / – Cano Health, Inc. (“Cano Health”) (NYSE: CANO), a leading value-driven primary care provider for seniors and underserved communities, and University Health Care and its affiliates (“University”), a provider private medical center dedicated to comprehensive and reliable medical services in local communities, today announced that Cano Health has acquired the University and its affiliates to $ 600 million. The complementary acquisition of Cano Health’s proprietary population health management platform leverages Cano Health’s high-quality operational and clinical care services to improve the health outcomes of academic patients while strengthening the position of the company in the fragmented sector Florida market.

Cano Health also now estimates FY2021 Adjusted EBITDA between $ 100 million and $ 110 million and reaffirms its membership objective for the year 2021 of 154,000 to 162,000 members and its revenue objective of between $ 1.4 billion and $ 1.5 billion.

“This transaction is a significant milestone for Cano Health and our patients as it will allow us to deliver our brand of affordable, high-quality primary care to more patients across the world. Florida market and accelerate the profitable growth of Cano Health, ”said Dr. Marlow Hernandez, Co-Founder, President and CEO of Cano Health. to the Cano Santé family. Our model has been proven to deliver industry-leading results while containing costs, and we look forward to delivering care on a larger scale than ever before. “

“Protecting the heritage of our family business, our relationships with providers and our deep ties to the local community has always been important to us. Our priority at every step was the well-being of our patients and the job security of our employees, ”said Maggie Quevedo, co-founder of the university.

Michel Quevedo, president of the university and son of its co-founders commented: “At Cano Health, we immediately recognized a partner who shares our values ​​and can help us build on the legacy left by my father, Félix Quevedo, Sr. My brother Félix Quevedo, Jr., and I, along with our family and the entire University team, look forward to building primary care in the United States with Cano Health. We are convinced that our common vision makes for a winning combination for our patients, employees and partners. “

Strategic rationale

The University’s services align with the Cano Health model, which provides members with access, quality and well-being through a high-tech and high-tech model of care. The two companies share a similar culture and the staff of both companies seek to forge lasting bonds with their members. The estimated turnover for the whole year 2021 of the University is approximately $ 355 million and adjusted EBITDA is $ 37 million.

With this combination, Cano Health plans to continue to grow by serving its approximately 143,000 combined members in 88 medical centers, with more than 1,000 employees and affiliated vendors across the country.

The combination with the University:

  • Add approximately 24,000 Medicare Advantage members.
  • Increase Cano Health’s organic Medicare membership and revenue growth due to a significant increase in clinical capacity and the exploitation of Cano Health’s strong brand in the markets in which the University operates.
  • Create synergies by adding affiliated suppliers to the CanoPanorama platform and to the operations of the medical center.
  • Improve the University’s medical claims expense ratio through operational improvements such as [email protected], a 24/7 emergency line and care management programs.
  • Leverage Cano Health’s proprietary population health management technology platform (CanoPanorama), delivering better healthcare revenues to more patients.
  • Increase Cano Health’s leading market share by Florida, the number one Medicare Advantage market in the United States.
  • Achieve Cano Health’s strategic objective of creating, purchasing and managing medical practices. Cano Health continues to pursue three key initiatives to realize the huge opportunity of value-driven primary care: 1) organic growth, 2) new market entry and 3) targeted acquisitions.

Financial conditions

  • Cano Health acquired the University with $ 540 million in cash and $ 60 million in equity. The transaction was financed with cash on hand and common shares issued to shareholders of the University.

About Cano Santé

Cano Health operates value-driven primary care centers and supports affiliated medical practices specializing in primary care for the elderly in Florida, Texas, Nevada and Puerto Rico, with additional markets developing. As part of its care coordination strategy, Cano Health offers sophisticated population health management programs including telehealth, home prescription delivery, wellness programs, care transition and the management of complex and high-risk care.

Cano Health’s personalized patient care and proactive approach to wellness and preventative care sets it apart from its competitors. Cano Health has consistently improved clinical outcomes while reducing costs, providing patients with the opportunity to live longer and healthier lives. Cano serves a majority minority population (80% of its patients are Latin American or African American) and a low-income population (50% of its members are doubly eligible for Medicare and Medicaid). For more information visit www.canohealth.com or www.canohealth.com/investisseurs/.

About university health care

University Health Care and its affiliates have provided comprehensive and reliable primary care to communities of South florida. The company’s mission is to improve the quality of life of its patients by providing them with excellent health care. Members of the University have access to excellent primary care providers and clinical support staff, transportation to and from its centers, wellness programs and pharmacy services. The company is dedicated to meeting and exceeding patient expectations and fostering an atmosphere of integrity, tranquility and mutual trust.

Forward-looking statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act. of 1995, as amended. Forward-looking statements relate to future events and anticipated operating results, business strategies, anticipated benefits of the proposed transaction, the anticipated impact of the proposed transaction on Cano Health’s business and future financial and operational results, expected amount and timing of synergies from the proposed transaction, financial guidance for fiscal 2021 and other aspects of our operations or results of operations. These forward-looking statements can generally be identified by expressions such as “will”, “expects”, “anticipates”, “anticipates”, “forecasts”, “estimates” or other words or expressions of similar importance. It is not certain whether any of the events anticipated by the forward-looking statements will occur or will occur, or if any of them occur, what impact they will have on the results of operations and the financial condition.

Significant risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, changes in market or industry conditions, the regulatory environment, competitive conditions and responsiveness to our services; our ability to continue to grow; our ability to integrate our acquisitions and achieve the desired efficiency gains; changes in laws and regulations applicable to our business; our ability to maintain our relationships with medicare plans and other major payers; the impact of COVID-19 or other pandemic, epidemic or infectious disease outbreak on our business and operating results; and our ability to recruit and retain qualified team members and independent physicians. For a detailed discussion of risk factors that could affect our actual results, please refer to the risk factors identified in the proxy statement / final prospectus filed with the SEC on May 7, 2021 and incorporated by reference in our Super 8- K filed on June 9, 2021. All information provided in this press release is as of the date hereof, and we assume no obligation to update or revise such information, except as required by law.

SOURCE Cano Health, LLC

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