CareMax reported a net loss of $465.7m for the fourth quarter (Q4) of 2023, compared to a net income of $10.4m in the same period of 2022.
The performance included a non-cash goodwill impairment of $369.2m.
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The technology-enabled value-based care delivery system saw its total revenue fall 8% to $151.8m in Q4 2023 from $164.2m in the corresponding quarter of the previous year.
Its operating loss for the three-month-period ended 31 December 2023 was $453m, compared with an operating loss of $86.23m in the prior year.
The company’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) was a loss of $71.8m in Q4 2023 versus a profit of $4.5m in Q4 2022.
In Q4 2023, CareMax’s Medical Expense Ratio surged to 122.7% from 69.5% in the same quarter of the previous year.
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By GlobalDataPlatform Contribution for Q4 2023 was a loss of $55.6m, compared with a gain of $25.6m in Q4 2022.
CareMax saw growth in its Medicare Advantage membership, which rose 19% year-over-year to 111,500 in Q4 2023.
For the full year ended 31 December 2023, CareMax’s net loss was $683.3m, compared to $37.7m a year earlier.
Total revenue for 2023 stood at $751.1m, representing a 19% increase from $631.1m in 2022.
Operating loss was $656.1m in 2023, compared with a $112.1m loss in 2022.
Adjusted EBITDA in 2023 was a loss of $63.1m, as against a profit of $19.1m a year ago.
Platform Contribution stood at $18.8m, down from $85.1m for the previous year.
Medical Expense Ratio for the full year was 91.5%, up from 72.7% in 2022.
CareMax CEO Carlos de Solo said: “We have made difficult but necessary decisions to de-emphasise certain longer-duration investments, such as de novo centres, and to refocus efforts on driving medical margin within our core centres and management services organisation while implementing cost-saving initiatives across the organisation.
“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 maximise the value of certain assets.”
