The healthcare provider's third-quarter earnings fell short of expectations, but leadership believes the company's operating model will drive future positive performance.
Cano Health—a Miami-based value-based primary care provider and population health company—has reported its 2022 third-quarter financial results, which came in below analysts' expectations.
Total revenue for the quarter grew by 33% year-over-year to $665.0 million but did not meet projected forecasts for the three-month period. Additionally, Cano Health reported a net loss of $112 million and has lowered its revenue estimates for the full year to between $2.7 billion and $2.75 billion, a decrease from the prior guidance range of $2.85 billion to $2.9 billion. Cano Health says it is lowering its guidance primarily due to lower-than-expected capitated revenue per member, per month, for new members. The organization is expecting new membership for the year between 300,000 and 305,000.
"Cano Health delivered improved profitability while achieving steady organic growth," Dr. Marlow Hernandez, Chairman and Chief Executive Officer at Cano Health, said in the earnings report. "While financial results were below our expectations due to lower revenue from new membership growth, existing membership performed in line with expectations. As these new members integrate into our care platform, we expect they will perform similarly to existing members in future periods. In response to our rapid growth and the higher cost of capital in the current economic environment, we are optimizing key areas of the business to leverage existing assets and prioritize cash flow. We are confident Cano Health's operating model will continue to deliver better health outcomes for our patients and sustainable long-term value creation for our shareholders."
Amanda Schiavo is the Finance Editor for HealthLeaders.