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Florida primary care provider Cano Health files for bankruptcy

The company specializes in senior care and treats more than 310,000 patients, many of whom are Medicare enrollees.
 
Miami’s Cano Health, with more than 1,000 employees and primary care offices across Florida, filed for Chapter 11 bankruptcy protection Sunday.
Miami’s Cano Health, with more than 1,000 employees and primary care offices across Florida, filed for Chapter 11 bankruptcy protection Sunday. [ DREAMSTIME | Dreamstime ]
Published Feb. 5

Miami’s Cano Health, with more than 1,000 employees and primary care offices across Florida, filed for Chapter 11 bankruptcy protection Sunday.

The company specializes in senior care.

Its Florida offices are heavily concentrated in Miami-Dade, Broward and Palm Beach counties, with some locations on the west coast in Tampa and Central Florida in Kissimmee/St. Cloud. Cano’s doctors treat more than 310,000 patients, many of whom are Medicare enrollees covered under value-based plans, according to a company description.

In the filing made in the U.S. Bankruptcy Court for the District of Delaware, Cano listed $1.2 billion in assets, including a little over $2 million in cash on hand and $1.4 billion in debt. The largest unsecured creditor is U.S. Bank, owed $306 million, according to the filing.

Cano, which went public three years ago, said in its filing Sunday that it received a commitment for $150 million in debtor-in-possession financing from certain existing secured lenders to reduce debt, support existing operations and complete a turnaround. It hopes to emerge from bankruptcy in the second quarter.

“I am confident we will emerge from this process a stronger organization with the necessary resources in place to continue delivering the quality of care our patients expect and deserve,” CEO Mark Kent said in a written statement.

The company’s struggles began in early 2023, when Cano had been growing rapidly by opening new locations while it faced major liquidity issues. Modern Healthcare reported Barry Sternlicht, a billionaire real estate investor; Lewis Gold, co-founder of Sheridan Healthcare; and Elliot Cooperstone, managing partner of InTandem Capital Partners, resigned in March 2023 and called for then-Cano Health CEO Marlow Hernandez to be removed. Hernandez stepped down in June and Mark Kent became interim CEO.

At that time, Kent pulled back on expansion and began cost-cutting.

According to Modern Healthcare, in August, Cano Health said it would lay off 700 employees, equal to 17% of its workforce. The company said Monday in a news release that it has divested operations in Texas and Nevada and exited the California and Puerto Rico markets. Cano also said it expects to achieve approximately $290 million of annualized cost reductions by the end of 2024.

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