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Cano Health, Inc. - CANO STOCK NEWS

Welcome to our dedicated page for Cano Health news (Ticker: CANO), a resource for investors and traders seeking the latest updates and insights on Cano Health stock.

Cano Health, Inc. (NYSE: CANO) is a high-touch, technology-powered healthcare company that provides personalized, value-based primary care to approximately 310,000 members across the United States and Puerto Rico. Founded in 2009 and headquartered in Miami, Florida, Cano Health focuses on transforming healthcare by improving the health, wellness, and quality of life for its patients through primary care medical centers and affiliated providers.

Recently, Cano Health has made significant strides in refining its operational footprint. On September 26, 2023, the company announced the sale of assets associated with its senior-focused primary care centers in Texas and Nevada to CenterWell Senior Primary Care for approximately $66.7 million. This transaction is part of Cano Health's strategy to streamline operations, focusing on improving performance in its core Florida market. The proceeds from this sale have strengthened the company's balance sheet, allowing it to remain in compliance with its debt covenants and enhance its liquidity to $109 million.

In addition, Cano Health appointed Eladio Gil as Interim Chief Financial Officer on September 29, 2023. Gil's extensive experience in healthcare finance is expected to drive further operational efficiencies and financial stability. On November 2, 2023, the company completed a 1-for-100 reverse stock split to regain compliance with NYSE listing requirements and make its stock more attractive to investors.

As of November 9, 2023, the company reported third-quarter 2023 financial results showing a 23% increase in capitated revenue year-over-year, despite higher third-party medical costs. Cano Health continues to exit non-core markets, such as California, New Mexico, and Puerto Rico, aiming to focus resources on its core Florida operations.

On February 4, 2024, Cano Health entered a Restructuring Support Agreement (RSA) with lenders holding a significant portion of its debt. This agreement included filing for prearranged voluntary Chapter 11 proceedings to facilitate debt reduction and operational restructuring. Supported by $150 million in new debtor-in-possession financing, the company expects to emerge from Chapter 11 with a stronger financial position by Q3 2024.

With its ongoing Transformation Plan, Cano Health aims to achieve approximately $290 million in annualized cost reductions by the end of 2024. Through this plan, the company seeks to enhance patient engagement, restructure contracts, and improve the efficiency and quality of care delivery.

Rhea-AI Summary
Cano Health, a value-based primary care provider, announces a change in executive leadership. Mark Kent is appointed as Interim CEO while an external search is conducted for a permanent successor. Dr. Marlow Hernandez steps down as CEO but remains on the Board of Directors. The company also plans to refresh the Board with new independent directors.
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Cano Health announces re-election of Dr. Alan Muney and Kim Rivera to Board of Directors
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Elliot Cooperstone, Lewis Gold, and Barry Sternlicht, the largest stockholders of Cano Health, Inc., have released a letter urging fellow stockholders to withhold support for Dr. Alan Muney and Kim Rivera, the only directors standing for re-election at the annual meeting. They accuse CEO Dr. Marlow Hernandez and his boardroom allies of ignoring calls for better corporate governance and a refined strategy, leading to a decline of over 90% in Cano's stock price since going public. The group has filed proxy materials, nominated two independent candidates for the board, and submitted a proposal to remove Dr. Hernandez. They have also filed a lawsuit to compel Cano to reopen the window for nominating directors and making business proposals at the annual meeting.
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Elliot Cooperstone, Lewis Gold, and Barry Sternlicht, who recently resigned from the Board of Directors of Cano Health, Inc., have issued a presentation outlining the case for changes in leadership and strategy at the company. They are urging stockholders to withhold support for Dr. Alan Muney and Kim Rivera, the only directors standing for re-election at the Annual Meeting. The Group holds an approximately 35% equity stake in Cano.
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FAQ

What is the market cap of Cano Health (CANO)?

The market cap of Cano Health (CANO) is approximately 12.4M.

What services does Cano Health provide?

Cano Health offers primary care medical services focusing on personalized, value-based care to improve patient health and wellness.

What was the significance of the recent asset sale to CenterWell?

The sale of assets in Texas and Nevada for $66.7 million is part of Cano Health's strategy to focus on its core Florida market, improving operational and financial performance.

Who is the current Interim Chief Financial Officer of Cano Health?

Eladio Gil was appointed as the Interim Chief Financial Officer on September 29, 2023, bringing over 30 years of healthcare finance experience.

Why did Cano Health complete a 1-for-100 reverse stock split?

The reverse stock split was completed to regain compliance with NYSE listing requirements and enhance the stock's attractiveness to investors.

What are Cano Health's recent financial highlights?

In the third quarter of 2023, Cano Health reported a 23% year-over-year increase in capitated revenue, driven by higher Medicare revenue PMPM and changes in membership mix.

What is the focus of Cano Health's Transformation Plan?

The Transformation Plan aims to achieve $290 million in annualized cost reductions by optimizing core operations in Florida and enhancing patient engagement and care efficiency.

What are the expected benefits of Cano Health's Chapter 11 restructuring?

The restructuring is expected to reduce debt, improve liquidity, and position Cano Health for long-term success by focusing on core business areas and achieving significant cost reductions.

How has Cano Health's financial restructuring been supported?

Cano Health's restructuring is supported by a $150 million debtor-in-possession financing from existing secured lenders and a Restructuring Support Agreement with major creditors.

What is Cano Health's strategy for the future?

Cano Health plans to continue enhancing its core Florida operations, exiting non-core markets, and focusing on improving care delivery and financial performance through its Transformation Plan.

Where can I find more information about Cano Health's restructuring proceedings?

Additional information can be found on the company's restructuring proceedings website at https://www.kccllc.net/CanoHealth.

Cano Health, Inc.

NYSE:CANO

CANO Rankings

CANO Stock Data

12.43M
1.25M
43.43%
34.34%
19.99%
Medical Care Facilities
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United States
Miami