Who could acquire Cano Health?
- he specialist favours an aggressive approach to growth and scaling for Cano Health over the next year – “whoever strikes first is going to be able to strike harder”.
- EBITDA multiples for primary care provider groups have “pretty much tripled”, according to the specialist.
- Cost per patient has increased from USD 4,000 to approximately USD 10,000, which has driven profitability timelines in new markets up to 3-4 years, we heard.
- We heard that Cano Health should avoid expanding into San Diego given reimbursement rates are low and “cost[s] to serve” are high.
“I think that in general value-based care is completely, it’s an emerging necessity, it’s completely underutilised right now, I think that it’s just scratching the surface.”
- However, the specialist also said there are still 30 or 40 more markets that are going to be able to deliver and sustain multiple medical centres with similar demographic make-ups to Cano Health – representing 5x growth runway.
- The specialist believes Cano Health “is a diamond in the rough […] to me it is the future of healthcare”.
- Cano Health has done better than most in acquiring and retaining staff which has helped reduce staff turnover. Read here for more expert insights on US healthcare staff shortages.
- We heard that Cano Health is “very big” in the basics of value-based care such as patient engagement and prevention.
For more human insights on Cano Health and value-based primary care providers, click on the transcripts below.
Related Transcripts
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