Cano Health is a primary care provider focused on the elderly, Won The Doctors Medical Center in Miami, Florida, was acquired for US$300 million. This is Cano Health’s second multi-million dollar acquisition in less than a month.
Doctor’s Medical Center is a primary care provider that provides services to Medicare, Medicaid, and ACA exchange members in 18 medical centers in South Florida.
Cano Health, also located in Miami, will increase its membership to approximately 197,000 and increase its medical centers to 106 through this acquisition. Specifically, the transaction will add approximately 7,000 Medicare Advantage, 31,000 Medicaid, and 14,000 ACA members to its roster.
15 of Doctor’s Medical Center’s 18 medical centers mainly provide services for adults and children Medicaid members. Therefore, Cano Health expects that this acquisition can provide more targeted services to its existing Medicaid and ACA members.
“DMC [Doctor’s Medical Center] Dr. Marlow Hernandez, Co-founder, Chairman and CEO of Cano Health, said at the press conference: “Our team has been serving the South Florida region for nearly 25 years and has continuously developed its clinical platform to meet the diverse care needs of the community. “With DMC as part of the Cano Health family, we are bringing our care model to more patients and gaining an important footprint and infrastructure to further improve the clinical outcomes of underserved patients.”
Doctor’s Medical Center’s full-year independent revenue for 2021 is estimated at 194 million U.S. dollars. Due to membership growth and improved health plan contracts, it is expected to reach approximately 106 million U.S. dollars in the second half of the year. The adjusted EBITDA for this year is estimated to be USD 22 million.
“Since I founded DMC, we have always believed that everyone deserves high-quality healthcare,” Dr. Ventura de Paz, founder, president and CEO of Doctor’s Medical Center, said in a press conference. “This union brings more services and resources to our patients and our dedicated team members, so we can thrive in future generations.”
Cano Health acquired Doctor’s Medical Center on July 2 for $300 million in cash.
The transaction was made two weeks after Cano Health announced It has been bought University Health Care is a primary health care service provider located in Miami, with 13 medical centers.
After the completion of the acquisition, Cano Health stated that it expects to have 154,000 to 162,000 members by the end of 2021, with revenues between 1.4 billion and 1.5 billion US dollars, and adjusted EBITDA will be between 100 million and 110 million US dollars.
Now, the company has updated its full-year guidance for 2021 to estimate revenue of approximately US$1.5 billion, adjusted EBITDA of approximately US$110 million, and membership between 205,000 and 210,000.
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