Cano Health Acquires Doctors Medical Center For $300 Million
Cano Health’s goal is to become the largest independent primary care
Cano Health is a population health company that offers quality primary care. The company has 18 medical centers located in southern Florida. It projects full-year revenue of $194 million in 2021 and $106 million for the second half of that year. The company also anticipates revenue growth of thirty to forty percent in the next five years. It recently announced its agreement to get University Health Care for $600 million.
The company plans to expand its services to the entire country. bringing its medical model to other states. It currently runs 126 medical centers in nine states and covers Medicare and Medicaid programs. It also has a network of telehealth, home and pharmacy services, and life support.
Humana has the right of first refusal on the Cano sale. Cano is Humana’s largest independent primary care provider in Florida. serving over 68,000 Humana members. Humana has been building up its risk-based capabilities in recent years, and this is a move that could potentially make Humana’s acquisition of Cano Health a reality.
Cano Health’s long-standing partnership with Humana
Cano Health is a value-based health plan with more than 103,000 members and a network of 564 primary care physicians. It operates in 14 markets and offers services to Medicare Advantage members. Its proprietary CanoPanorama technology platform enables physicians to deliver high-quality care. The company is also partnered with leading health plans to improve care delivery.
Cano operates 11 medical centers in Florida and Texas. It also has a deal with Humana as its Medicare Advantage health plan. Humana already has a primary-care business that’s focused on seniors. Its CenterWell Senior Primary Care unit recently joined forces with a private-equity firm. Welsh Carson Anderson & Stowe to open 100 primary care clinics that focus on senior care.
Humana and Cano Health are also building a new primary care center in Las Vegas. that will serve the Medicare population.
Cano Health’s care model
The Cano Health care model is based on a holistic approach to healthcare. that aims to improve the lives of those it serves. Its primary care services are available to Medicare and Medicaid beneficiaries. In addition, it offers social services, telehealth, pharmacy services, and transportation in specialized vehicles. Moreover, it emphasizes addressing health disparities by delivering high-quality, value-based care.
Cano Health has a significant presence in the Medicare Advantage (MA) market. The company’s members in this program represent 44% of its total membership. This represents a massive revenue opportunity for Cano. According to Bloomberg, CVS, and Humana are interested in buying Cano. The two companies share a right of first refusal.
Cano Health plans to go public through a special-purpose acquisition vehicle (SPAC) in 2020. It is estimated to have a valuation of $4.4 billion. However, the company has already faced several shareholder activist attacks this year. One of them is Dan Loeb’s Third Point LLC, which owns a 5% stake in the company. In March, Loeb said that Cano should explore strategic alternatives.