Aug 10 (Reuters) - Cano Health (CANO.N) said on Thursday there is substantial doubt about the company's ability to continue as a going concern within one year, sending shares down about 48% after the bell.
Under its restructuring plan, the company expects to lower costs by reducing 17% of its current workforce, about 700 employees, in the third quarter of 2023.
The company's medical cost ratio — or spending on claims as a percentage of premiums — rose to 103.5% in the quarter, compared with 82.6% a year earlier.
Cano shareholders, including Cooperstone, Gold & Sternlicht, had issued an open letter in April highlighting an urgent need for leadership changes.
The company's revenue for the quarter ended June 30 was $766.75 million, below analysts' average estimate of $828.44 million, according to Refinitiv data.
Persons:
Cano, Marlow Hernandez, Pratik Jain, Shilpi Majumdar
Organizations:
Cano Health, Thomson
Locations:
Bengaluru