Senior-focused primary care provider Cano Health is expanding its footprint with a $600 million acquisition.
The company has purchased Miami-based University Health Care, a primary care service provider that includes 13 medical centers serving approximately 24,000 Medicare Advantage members, said Barbara Ferreiro, chief brand officer at Cano Health, in an email.
The acquisition, which has already closed, increases Miami-based Cano Health’s membership to approximately 143,000 receiving care at 88 medical centers with over 1,000 staff and affiliate providers. Cano Health paid $540 million in cash and $60 million in equity for University Health Care.
The primary care provider’s services align with the Cano Health model, Ferreiro said. Not only does it offer access to primary care physicians and clinical support staff, but it also offers transport to and from its centers, wellness programs and pharmacy services. In addition, every University clinic has bilingual providers and support staff.
“Like Cano Health, University is focused on addressing health disparities by providing access to high-quality, value-based care,” Ferreiro said.
The combination of the companies is expected to provide several benefits to both.
The acquisition boosts Cano Health’s Medicare Advantage organic membership and revenue growth, and it adds affiliate providers to CanoPanorama — the company’s proprietary population health management platform — and to its medical centers, Ferreiro said.
University Health Care patients, on the other hand, will benefit from additional Cano Health services and locations, including access to dental care and physiotherapy services, she said. University’s 300-plus employed and affiliate providers will also gain access to CanoPanorama.
“Protecting the legacy of our family-owned business, our relationships with providers, and our deep ties to the local community has always been important to us,” said Maggie Quevedo, co-founder of University Health Care, in the news release. “Our priority every step of the way was the wellbeing of our patients and the job security of our employees.”
With the new acquisition, Cano Health has updated its financial estimates for 2021. The company now expects adjusted EBITDA to be between $100 million and $110 million. But the company reaffirmed its full-year 2021 membership guidance of 154,000 to 162,000 and revenue guidance of between $1.4 billion and $1.5 billion.
Photo: diego_cervo, Getty Images