CareMax reports Q4 and full year 2023 results

CareMax, Inc. announced financial results for the fourth quarter and full year ended December 31, 2023.

“In the fourth quarter, we began taking major steps with the goal of solidifying the long-term viability of our business,” said Carlos de Solo, Chief Executive Officer. “We have made difficult but necessary decisions to de-emphasize certain longer duration investments, such as de novo centers, and to refocus efforts on driving medical margin within our core centers and management services organization while implementing cost saving initiatives across the organization. Our lenders have also granted us limited waivers of certain financial covenants in our credit facility in the short term to help provide us with flexibility as we explore strategic options across our lines of business to maximize the value of certain assets. In short, we are taking the actions we believe are necessary to reposition CareMax for future success.”

de Solo continued, “What has not changed is our commitment to clinical excellence. Having achieved a 5-Star quality rating across our centers for the third consecutive year, CareMax remains at the forefront of enabling physicians to succeed under value-based care. We thank our team members for their dedication to our mission and for upholding the high standards of care our organization was founded upon.”

Fourth quarter 2023 results

• Total membership of 270,000, up 4% year-over-year.
• Medicare Advantage membership of 111,500, up 19% year-over-year.
• Total revenue was $151.8 million, down 8% year-over-year.
• Net loss was $465.8 million, including $369.2 million of non-cash goodwill impairment, compared to net income of $10.4 million for the fourth quarter of 2022, which included a $76.3 million non-cash gain on remeasurement of contingent earnout liabilities and a $20.1 million non-cash income tax benefit, partially offset by a $70.0 million non-cash goodwill impairment.
• Adjusted EBITDA was ($71.8) million, compared to $4.5 million for the fourth quarter of 2022.
• Platform Contribution was ($55.6) million, compared to $25.6 million for the fourth quarter of 2022.
• Medical Expense Ratio was 122.7%, compared to 69.5% for the fourth quarter of 2022, primarily due to the impacts of prior period developments and a provision for adverse deviation.
• De novo pre-opening costs and post-opening losses for the fourth quarter of 2023 were $5.9 million.

Full year 2023 results

• Total revenue was $751.1 million, up 19% year-over-year.
• Medical Expense Ratio was 91.5%, compared to 72.7% for the year ended December 31, 2022.
• Net loss was $683.3 million, including $547.2 million of non-cash goodwill impairment, compared to net loss of $37.8 million for the year ended December 31, 2022, which included a $76.3 million non-cash gain on remeasurement of contingent earnout liabilities and a $19.5 million non-cash income tax benefit, partially offset by a $70.0 million non-cash goodwill impairment.
• Adjusted EBITDA was ($63.1) million for the year ended December 31, 2023 and $19.1 million for the year ended December 31, 2022.
• Platform Contribution was $18.8 million, compared to $85.1 for the year ended December 31, 2022.

MB Bureau