Cano Health Explores Sale and Cuts Jobs Amid Liquidity Concerns

Miami-based primary care provider, Cano Health, is facing financial challenges and has announced job cuts and the possibility of selling the company. The primary reason cited is the lack of sufficient liquidity to sustain operations over the next year.

Exploring a Sale and Selling Noncore Assets

Cano Health is actively evaluating interest in a potential sale of the entire business. To further address its financial situation, the company has also expedited plans to sell noncore assets. As part of this process, Cano has enlisted the help of advisers; however, no specific timeline has been set for the sale's completion.

Operational Changes: Exiting Certain Markets and Consolidation

In an effort to streamline operations and optimize resources, Cano Health has decided to exit operations in California, New Mexico, Illinois by fall and Puerto Rico operations by January 1. The company will consolidate its operations in Texas and Nevada, which will result in a reduction in the number of medical centers.

Workforce Restructuring: Job Cuts Planned

Cano Health plans to implement a workforce restructuring initiative, with a target of reducing approximately 700 employees, constituting 17% of its current workforce, during the third quarter of this year. Approximately 40% of these job cuts will be a result of exiting certain markets. These changes are expected to yield approximately $50 million in annual cost reductions.

Utilizing Sale Proceeds for Corporate Purposes and Debt Repayment

The proceeds from any potential sale of assets will be utilized for general corporate purposes and debt repayment. This strategic approach aims to improve Cano Health's overall financial position.