Cano Health: How a $4.4B SPAC-Fueled Clinic Roll-Up Went Bankrupt

Cano Health operated Medicare Advantage-focused primary care clinics for seniors in Florida, Texas, Nevada, New Mexico and Puerto Rico. It went public via SPAC in June 2021 at a $4.4B valuation. Cano pursued aggressive acquisition-led expansion, adding hundreds of physicians and dozens of clinics. Underneath, the business struggled with per-member medical costs, poor cost controls, and integration debt from its acquisitions. By 2023 activist investor Dan Loeb\'s Third Point had pushed for a sale that never materialized, the CEO resigned amid an accounting probe, and Cano warned of going-concern doubt. On February 4, 2024, Cano Health filed Chapter 11 with more than $1B in debt. It emerged from bankruptcy later in 2024 as a smaller private company focused on Florida clinics, but the SPAC-era vision — a national roll-up of Medicare Advantage primary care — was over, and equity was wiped out.