Mark Kent
appointed Interim Chief Executive Officer
Dr. Marlow
Hernandez has agreed to step down immediately as Chief
Executive Officer and remain on the Board of Directors
Launches search to identify permanent CEO and
to refresh the Board with additional new independent
directors
MIAMI, June 16,
2023 /PRNewswire/ -- Cano Health, Inc. ("Cano Health"
or the "Company"), a leading value-based primary care provider and
population health company, today announced a change in its
executive leadership intended to advance execution of the Company's
strategy for stockholder value creation.
Effective immediately, the Company has named current Chief
Strategy Officer Mark Kent as
Interim Chief Executive Officer while an external search is
conducted for a permanent successor. Dr. Marlow Hernandez and the Company's Board of
Directors have agreed that Dr. Hernandez will resign immediately as
CEO and will continue to serve on the Board.
"Over nearly 15 years, Dr. Hernandez has pursued a powerful
mission to improve patient health by delivering high-quality
primary care to predominantly underserved communities," said
Solomon Trujillo, Chairman of the
Board. "Guided by that mission, he established Cano Health as one
of the only value-based care platforms in the United States capable of delivering
superior health outcomes at scale. Now, at this critical inflection
point in Cano Health's trajectory, we have concluded together that
we need to identify the right individual to take Cano Health to the
next level—a proven operator who, as CEO, can accelerate execution
of the Company's value creation plan to drive sustainable
profitable growth for our stockholders.
"On behalf of the entire Board, I would like to thank Dr.
Hernandez for all he has done to build this strong platform, which
has made healthcare more connected, aligned, and proactive. We look
forward to continuing to benefit from his clinical expertise and
unique understanding of our patient population as a member of the
Board.
"Over the past two months we have been impressed by Mr. Kent's
ability to rapidly integrate and move the team toward constructive
change. We are grateful that he has agreed to take on this role on
an interim basis, providing continuity for all stakeholders even as
we accelerate efforts to improve operations, helping the Company to
deliver on its value creation commitments for stockholders."
"It has been a privilege to lead Cano Health since the beginning
and I am so proud of the platform we have built to measurably
improve care for those who need it most," said Dr. Hernandez. "It
is of the utmost importance to me that the Company move forward,
free of distractions, under the best possible CEO. Mr. Kent is a
proven healthcare operator, and having seen the progress he has
already driven, I have tremendous confidence that under his
leadership the Company will continue to deliver the quality care
our patients have come to expect and capitalize on the massive
market opportunity for value-based care as the Board seeks the
optimal permanent successor."
Mr. Kent said, "Since joining Cano Health earlier this year, I
have been so impressed by Dr. Hernandez's—and the entire
organization's—heartfelt commitment to transforming healthcare by
delivering better outcomes at a lower cost. It is also clear that
the Company needs to operate more efficiently to achieve its full
potential, and I look forward to dedicating my full attention to
executing our strategy to drive sustainable profitable growth and
deliver tangible results for all stakeholders."
In addition, the Board, working with Russell Reynolds' Board Advisory Group, will
advance its ongoing efforts to refresh the Board's membership over
the next several months by adding new independent directors with
appropriate experience and backgrounds to enhance the Board's
capabilities and help optimize performance.
About Mark Kent
Prior to joining Cano Health, Mr. Kent founded three startup
healthcare companies which help provider practices operate
successfully within value-based arrangements: Care Management
Resources, Total Health Medical Centers and Your Partners in
Health. He has also held numerous senior executive roles, including
having served as CEO of Women's Health Care Hospital in
Evansville, Indiana and as CEO
& Regional President of all Humana-owned, Florida-based primary care practices, which
today are known as Conviva Care Centers.
Mr. Kent is a nurse by training and earned a Master's in
Business Administration from Purdue
University. He is double board certified as a Fellow of the
American College of Health Care Executives and a Fellow of the
American College of Medical Practice Executives. He also proudly
serves on numerous national and local boards including the Broward
Health Foundation Board.
About Cano Health
Cano Health (NYSE: CANO) is a high-touch, technology-powered
healthcare company delivering personalized, value-based primary
care to approximately 390,000 members. With its headquarters in
Miami, Florida, Cano Health is
transforming healthcare by delivering primary care that measurably
improves the health, wellness, and quality of life of its patients
and the communities it serves. Founded in 2009, Cano Health has
more than 4,000 employees, and operates primary care medical
centers and supports affiliated providers in nine states and
Puerto Rico. For more information,
visit canohealth.com or investors.canohealth.com.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements relate to future events and involve
known and unknown risks, uncertainties and other factors which are,
in some cases, beyond our control and could materially affect
actual results, performance or achievements. These forward-looking
statements generally can be identified by phrases such as "will,"
"expects," "anticipates," "foresees," "forecasts," "estimates" or
other words or phrases of similar import, including, without
limitation, (i) our belief that changing our executive leadership
will advance the execution of our strategy for stockholder value
creation, including our plans to (A) identify a new permanent CEO
to take Cano Health to the next level and accelerate execution of
our value creation plan to drive sustainable profitable growth for
our stockholders, (B) accelerate our efforts to improve operations
to deliver on our value creation commitments for stockholders, (C)
operate more efficiently to achieve our full potential, and (D)
execute our strategy to drive sustainable profitable growth and
deliver tangible results for all stakeholders; (ii) our belief
under Mr. Kent's leadership we will continue to deliver the quality
care our patients have come to expect and capitalize on the massive
market opportunity for value-based care as we seek the optimal
permanent successor as CEO; and (iii) our plans to refresh the
Board's membership over the next several months by adding new
independent directors with appropriate experience and backgrounds
to enhance the Board's capabilities and help optimize performance.
These forward-looking statements are based on information available
to us at the time of this release and our current expectations,
forecasts and assumptions, and involve a number of judgments, risks
and uncertainties. We derive many of our forward-looking statements
from our operating budgets and forecasts, which are based on many
detailed assumptions. While we believe that our assumptions are
reasonable, we caution that it is very difficult to predict the
impact of known or unknown factors, and it is impossible for us to
anticipate all factors that could affect our actual results. It is
uncertain whether any of the events anticipated by our
forward-looking statements will transpire or occur, or if any of
them do, what impact they will have on our results of operations
and financial condition. Important risks and uncertainties that
could cause our actual results and financial condition to differ
materially from those indicated in our forward-looking statements
include, among others, changes in market or industry conditions,
changes in the regulatory environment, competitive conditions,
and/or consumer receptivity to our services; changes in our
strategy, future operations, prospects and plans; developments and
uncertainties related to the Direct Contracting Entity program; our
ability to realize expected financial results, including with
respect to patient membership, total revenue and earnings; our
ability to predict and control our medical cost ratio; our ability
to grow market share in existing markets and continue our growth;
our ability to integrate our acquisitions and achieve desired
synergies; our ability to maintain our relationships with health
plans and other key payors; our future capital requirements and
sources and uses of cash, including funds to satisfy our liquidity
needs; our ability to attract and retain members of management and
our Board of Directors; and/or our ability to recruit and retain
qualified team members and independent physicians. Actual
results may also differ materially from such forward-looking
statements for a number of other reasons, including those set forth
in our filings with the SEC, including, without limitation, the
risk factors identified in our Annual Report on Form 10-K for the
fiscal year ended December 31, 2022, filed with the SEC on March
15, 2023, as amended by our Annual Report on Form 10-K/A, filed
with the SEC on April 7, 2023 (the "2022 Form 10-K"), as well as
our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K
that we have filed or expect to file with the SEC during 2023
(which may be viewed on the SEC's website at http://www.sec.gov or
on our website at https://investors.canohealth.com), as well as
reasons including, without limitation, delays or difficulties in,
and/or unexpected or less than anticipated results from our efforts
to: (i) drive sustainable profitable growth and stockholder value
creation and/or operate more efficiently, such as due to lower than
expected revenues, higher interest rates, a broad recessionary
economic environment, higher than expected operating costs, greater
than anticipated competitive factors and/or lower than expected
patient utilization rates; (ii) capitalize on the massive market
opportunity for value-based care, such as due to higher than
expected competition for our patients services, regulatory burdens
and/or less than anticipated access to liquidity; and/or (iii)
difficulties or delays in identifying and on-boarding new
directors. For a detailed discussion of the risks and uncertainties
that could cause our actual results to differ materially from those
expressed or implied by the forward-looking statements, please
refer to our risk factor disclosure included in our filings with
the SEC, including, without limitation, our 2022 Form 10-K.
Investors should evaluate all forward-looking statements made in
this release in the context of these risks and uncertainties.
Factors other than those listed above could also cause our results
to differ materially from expected results. Forward-looking
statements speak only as of the date they are made and, except as
required by law, we undertake no obligation or duty to publicly
update or revise any forward-looking statement, whether to reflect
actual results of operations; changes in financial condition;
changes in general U.S. or international economic, industry
conditions; changes in estimates, expectations or assumptions; or
other circumstances, conditions, developments or events arising
after the issuance of this release. Additionally, the business and
financial materials and any other statement or disclosure on or
made available through our websites or other websites referenced
herein shall not be incorporated by reference into this
release.
Media Contact
Kekst CNC
Anntal Silver / Nick Capuano
anntal.silver@kekstcnc.com / nicholas.capuano@kekstcnc.com
Investor Contact
Cano Health IR
investors@canohealth.com
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SOURCE Cano Health, Inc.