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Clover Health bet big on a controversial new Medicare program with a huge revenue opportunity. Clover Health is slashing its footprint in a key federal program that the health-insurance upstart has bet big on since 2021. The direct-contracting program aims to lower costs for Medicare by changing up how doctors caring for traditional Medicare patients are paid. But Clover lost money during the first year of the program. This article was initially published on November 8 and has been updated with information about Clover's performance in the direct-contracting program in 2021.
Sale-leasebacks allow retailers to raise capital without shedding stores by selling the underlying real estate and turning them from landlords into tenants. They also point out that companies often spend the money on share buybacks and dividends rather than investing in their business. Spokespeople for Kohl's, Macellum and Ancora declined to comment. It is not clear how many of Kohl's 1,100 stores would have been involved in any deal. Reuters GraphicsRENT EXPENSESIn a letter to shareholders in March defending its strategy against criticism from hedge fund Macellum Capital Management LLC, Kohl's said that a "large" sale-leaseback would "negatively impact margins by adding unnecessary rent expenses in perpetuity and risk Kohl's investment-grade rating".
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On Thursday, the billionaire investor Vinod Khosla spoke about reducing costs in healthcare. Vinod Khosla thinks the best way to disrupt healthcare is to change how it's paid for at the primary-care level. The billionaire investor and founder of Khosla Ventures said he thought that in the next decade, primary care should cost as little as $1 to $5 per visit. "If you change the definition of primary care from what is today's primary care, or urgent care mostly, to a much-broader definition where your hypertension is managed in primary care, where your diabetes is managed in primary care, you will see that take over and affect the core total cost of care downstream," he said. For instance, a company like Oak Street Health can operate primary care at a loss because it makes money if its patients stay healthy.
Activist investor Ancora Holdings is pushing Kohl's to remove its chief executive and its chairman. Ancora sent a letter to the board Thursday asking for the replacement of CEO Michelle Gass and Chairman Peter Boneparth. The activist investor, along with Macellum Advisors, attempted to seize control of Kohl's board in 2021. In that attempt, Ancora, along with other stakeholders, pushed for new directors with retail experience, inventory reduction and the sale of Kohl's real estate. The real estate investor offered as much as $2 billion for the chain's property, which Kohl's would lease back for its store locations.
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