Vivid Well being explores sale of California Medicare Benefit enterprise
Photograph: Maskot/Getty Photographs
Vivid Well being Group is exploring a possible sale of its California Medicare Benefit enterprise, the corporate has introduced.
Vivid Well being stated it’s exploring strategic options for its MA plans within the state, Model New Day and Central Well being Plan.
There’s “inbound curiosity” within the California MA enterprise, which is robust and is serving 125,000 seniors, based on Manny Kadre, lead unbiased director of Vivid Well being’s Board of Administrators.
WHY THIS MATTERS
The corporate is attempting to right-size its fiscal ship, as its monetary struggles proceed.
As of Monday morning, its inventory was buying and selling at .16 on the New York Inventory Change.
Vivid Well being’s financing scenario is unsure, with the latest sale of half of the CFO’s stake within the firm not a very good signal, Searching for Alpha stated final month. There are questions over the corporate’s capability to proceed working for the following yr with its present money reserves, the report stated.
The proceeds of the sale of its California MA plans would considerably bolster the corporate’s monetary place and set up a powerful basis for long-term sustainable development, the corporate stated.
Vivid Well being stated it could proceed to deal with capturing the shift to value-based, consumer-driven healthcare via its Client Care Supply enterprise, whereas working to wind-down and exit its Affordable Care Act insurance coverage enterprise.
Vivid Well being has additionally introduced that it has prolonged a waiver and modification to its credit score facility via June 30.
THE LARGER TREND
In October 2022, Vivid Well being Group announced it could now not supply particular person and household well being plans via Vivid HealthCare in 2023 and that it could be slicing Medicare Benefit merchandise outdoors of California and Florida.
The cutback affected plans in Alabama, Arizona, Colorado, Florida, Georgia, Nebraska, North Carolina, Texas and Tennessee. The corporate had beforehand introduced it could exit six markets: Illinois, New Mexico, Oklahoma, South Carolina, Utah and Virginia.
ON THE RECORD
Mike Mikan, President and CEO of Vivid Well being, stated, “Since our founding, Vivid Well being has labored to make healthcare easier, extra private and inexpensive for customers. As our markets evolve, we’re taking steps to adapt and guarantee our companies are finest positioned for long-term success. Consistent with this, we see super future development alternatives in our Client Care Supply enterprise, which has carried out nicely within the First Quarter, exceeding development expectations and now serving roughly 375,000 value-based customers. We stay up for persevering with to drive differentiated outcomes on this enterprise as we deal with delivering higher outcomes via value-driven healthcare.”
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