Cano Health, a primary care provider focused on seniors, has acquired Miami, Florida-based Doctor’s Medical Center for $300 million. This is Cano Health’s second multimillion-dollar acquisition in less than a month.
Doctor’s Medical Center is a primary care provider offering services across 18 medical centers in South Florida to Medicare, Medicaid and ACA exchange members.
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Cano Health, also based in Miami, will boost its membership to approximately 197,000 and increase its medical centers to 106 with this acquisition. Specifically, the transaction will add approximately 7,000 Medicare Advantage, 31,000 Medicaid and 14,000 ACA members to its roster.
Fifteen of Doctor’s Medical Center’s 18 medical centers serve predominantly adult and pediatric Medicaid members. Thus, Cano Health expects the acquisition to enable it to deliver more targeted services to its existing Medicaid and ACA members.
“The DMC [Doctor’s Medical Center] team has served the South Florida region for nearly 25 years, evolving its clinical platform to meet the diverse care needs of the community,” said Dr. Marlow Hernandez, co-founder, chairman and CEO of Cano Health, in a news release. “With DMC as part of the Cano Health family, we are bringing our care model to more patients and acquiring important footprint and infrastructure to further improve the clinical outcomes of underserved patients.”
Doctor’s Medical Center’s standalone full-year 2021 revenue is estimated to be $194 million, with approximately $106 million expected in the second half of the year as a result of membership growth and improvements in health plan contracts. Adjusted EBITDA for the year is estimated to be $22 million.
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“Since I founded DMC, we have operated with the belief that everyone should have access to quality healthcare,” said Dr. Ventura de Paz, founder, president and CEO of Doctor’s Medical Center, in a news release. “This union brings even more services and resources to our patients and our dedicated team members, so we can thrive for generations to come.”
Cano Health acquired Doctor’s Medical Center on July 2 with $300 million in cash.
The transaction comes just two weeks after Cano Health announced it had bought University Health Care, a primary care service provider based in Miami with 13 medical centers.
Following that acquisition, Cano Health said it expected to end 2021 with 154,000 to 162,000 members, revenues between $1.4 billion and $1.5 billion and adjusted EBITDA between $100 million and $110 million.
Now, the company has updated its full-year 2021 guidance to estimated revenues of approximately $1.5 billion, adjusted EBITDA of around $110 million and membership of 205,000 to 210,000.
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