Primary care company Cano Health has successfully emerged from bankruptcy, it announced last week.
In an announcement, Cano said it came out of bankruptcy "as a reorganized private company with a significantly improved capital structure and optimized operations focused on providing quality patient care within the Florida market." The company's reorganization plan secured court approval June 28.
Cano said it has "significantly reduced" its debts, converting over $1 billion into a mix of common stock and warrants. In addition, its existing investors provided $200 million in additional funding to see the company through its restructuring, according to the announcement.
"This has been a transformative year, and the successful conclusion of our court-supervised restructuring has put Cano Health in an excellent position for the future," Mark Kent, CEO of Cano Health, said in a release. "We are moving forward with incredibly strong physician partnerships and an improved medical center portfolio."
"Cano Health has the proper resources to focus on what matters most—treating our patients with the same level of care and attention as we would our own families," Kent added.
Cano Health filed for bankruptcy in February. Prior to that, though, the company was already pushing to strengthen both its financial and operational performance. It has been able to streamline its asset portfolio and find more than $270 million in cost reductions and improvements, Cano said.
Streamlining its business included exiting expansion markets that were underperforming and "pruning its medical center portfolio" to several key Florida markets.
The efforts so far have Cano performing well against its $290 million cost reduction goal for 2024, according to the release.
"We are taking a disciplined and strategic approach to our growth over the next few years, with the primary goal of improving services for patients within our existing Florida footprint, which now consists of 80 locations," Kent said. "We are already seeing encouraging results across our improved platform, and I am immensely proud of our associates for their continued dedication to our patients throughout this process."
"Despite the challenges we have faced as an organization, we have emerged as a stronger and more focused company with a bright future," he said.