Dive Brief:
Cano Health CEO Mark Kent is leaving the primary care provider after shepherding the company through bankruptcy restructuring.
He has stepped down effective immediately, a Cano spokesperson told Healthcare Dive. The company is currently “refining its leadership structure,” and Kent left to focus on his next business venture, according to a press release.
Alan Wheatley, executive chairman of the board, will oversee the transition as Cano finalizes its new leadership framework, the spokesperson said.
Dive Insight:
Kent became CEO of the chain of primary care clinics geared toward Medicare beneficiaries at a challenging time for the company. He joined Cano in 2023 as chief strategy officer, and later that year took up the chief executive role when the company’s founder Marlow Hernandez stepped down.
Hernandez left following a campaign from former board members who criticized Cano for poor corporate governance, burning through cash and driving up the company’s debt.
The primary care provider’s share price had declined significantly by the time Kent was appointed CEO. After he took the helm, Cano moved to close medical centers, cut staff and exit markets to improve its financial position.
Months into Kent’s tenure, Cano reported a net loss of $491.7 million for the third quarter, more than four times greater than its losses during the prior-year period.
The company accelerated its financial turnaround plan in early 2024 after it received a delisting warning from the New York Stock Exchange for failing to comply with market capitalization rules. It hoped to cut costs by $290 million by the end of the year.
The following month, Cano filed for bankruptcy and began proceedings to leave the stock exchange, about three years after it went public through a merger with a special purpose acquisition company.
The primary care chain exited bankruptcy in the summer last year as a private firm. Cano now operates about 80 locations in Florida, according to its website.
