Primary care provider Cano Health will receive a nearly $1.5 billion infusion as investors push deeper into a growing form of care delivered to Medicare Advantage patients.
The privately held Miami-based company said Thursday that it will merge with a publicly traded special purpose acquisition company, Jaws Acquisition Corp., in a deal aimed at fueling value-based care.
In that approach, doctors essentially focus more on keeping patients healthy or improving their health instead of waiting to treat whatever ailment makes them seek care.
Medicare Advantage plans are privately run versions of the government's Medicare program that covers care for people who are age 65 or older or have certain disabilities or illnesses.
Cano Health treats more than 103,000 patients through a network of primary care doctors in Florida, Texas, Nevada and Puerto Rico. It brought in about $365 million in revenue last year, and CEO Dr. Marlow Hernandez said he expects big growth for value-based care.
"The market is vast, the demand is huge and the supply (of care providers) is incredibly limited," he said.
This type of care often involves a lot of things done outside the doctor's office. Cano Health, for instance, has drivers who take patients to and from appointments.
The company offers incentives for patients who keep up with their health screenings or keep their blood pressure under control. It also provides home visits for some minor illnesses.
