CareMax acquires value-based care business, shares jump

Caremax

01/06/2022 16:15

** Shares of CareMax Inc  CMAX.O  rise 12.4% to $5.26 
    ** CMAX says it has agreed to acquire the Medicare
value-based care business of hospital operator Steward Health
Care System  urn:newsml:reuters.com:*:nBw4JQl40a
    ** Co, which provides healthcare services for seniors, says
it would serve Steward's network of about 170,000 Medicare
patients after deal closes
    ** CMAX to pay $25 mln in cash and issue 23.5 mln shares of
its Class A common stock to Steward shareholders at deal close,
expected later this year
    ** Transaction expected to contribute annual revenue of
about $1.6 bln to $1.7 bln and adjusted EBITDA of about $100 mln
to $115 mln by 2025 - CMAX
    ** Under value-based care, healthcare providers are paid
based on the quality of their services and value to patients    
    ** Stock down 31% YTD, including session moves

 (Reporting by Amruta Khandekar)
 ((Amruta.Khandekar@thomsonreuters.com;))