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Primary care provider Cano Health is looking to sell certain non-core assets so it can focus on its Medicare Advantage business.
The membership-based company’s announcement that it was exploring strategic alternatives for its non-core segment came Tuesday as it reported first-quarter earnings.
Related: Cano Health directors resign, call for removal of CEO
Of the company’s 388,667 members, 140,366 are through Medicare Advantage plans. The company also has members through the Medicare Accountable Care Organization Reach model, as well as Medicaid and Affordable Care Act plans.
During the first quarter, Miami-based Cano received $1,180 per Medicare Advantage member per month, 5% less than 2022’s first quarter when it received $1,249 per member per month. Cano received $1,489 per member per month for Medicare ACO Reach members, $183 for Medicaid members and $11 for ACA members.
Overall, Cano’s monthly revenue per member fell 12% from 2022’s first quarter, which the company attributed to a higher proportion of non-Medicare members.
Cano posted a first-quarter net loss of $60.6 million, or 12 cents per share, compared with a net loss of $85,000, or 0 cents per share, a year ago.
Humana and CVS Health were reportedly in a bidding war to buy Cano last year, but no transaction took place.
In April, the company faced a public clash with three former directors of its board: Barry Sternlicht, a billionaire real estate investor; Dr. Lewis Gold, co-founder of Sheridan Healthcare; and Elliot Cooperstone, managing partner of InTandem Capital Partners. The trio resigned and called for Cano Health CEO Dr. Marlow Hernandez to be removed.
Cano has since separated the roles of CEO and board chairman, appointing communications executive Solomon Trujillo as chairman.
Among the trio’s complaints was the company’s unwillingness to sell non-core assets. A representative for the trio did not respond to a request for comment.
The three are suing Cano’s board of directors for a breach of fiduciary duty and seek to re-open Cano’s advance-notice nomination window for stockholder notice of director candidate nominations. Cano said it will defend itself against the lawsuit.
This story first appeared in Digital Health Business & Technology.