CareMax enters into agreement to acquire DNFMedical centers to further expand central florida presence
CareMax, Inc. [CMAXW] a leading technology-enabled provider of value-based care to seniors, announced today it has entered into a definitive agreement to acquire DNF Medical Centers (“DNF”), a leading medical practice in the Orlando Metro area that will add six medical centers serving more than 4,000 Medicare Advantage members to CareMax. CareMax intends to use DNF as the foundation for its further expansion in the Central Florida and Tampa Bay region, a market with more than 2 million Medicare-eligible beneficiaries
By Hemanth 02:55AM ET - CareMax, Inc. [CMAXW] a leading technology-enabled provider of value-based care to seniors, announced today it has entered into a definitive agreement to acquire DNF Medical Centers (“DNF”), a leading medical practice in the Orlando Metro area that will add six medical centers serving more than 4,000 Medicare Advantage members to CareMax. CareMax intends to use DNF as the foundation for its further expansion in the Central Florida and Tampa Bay region, a market with more than 2 million Medicare-eligible beneficiaries.“We are excited to grow CareMax’s presence in Central Florida,”commented Carlos de Solo, Chief Executive Officer of CareMax. “DNF represents an important opportunity for CareMax to bring our model of high-quality, compassionate care to more seniors in the region. We plan to utilize DNF’s large, multi-dimensional medical centers as the foundation to grow our regional operations team in Central Florida and accelerate our planned de novo growth and strategic add-ons in the area.”“After serving the Orlando community for over 15 years, we’re excited for our beloved patients, providers, and employees to join CareMax, who we are confident will preserve the legacy left by my father,Norberto Fleites Sr.,” said Norberto Fleites Jr., son of DNF’s Founder, Dr. Norberto Fleites. “We have the utmost respect for the quality of patient care and capabilities that CareMax provides, and we look forward to the DNF team joining CareMax to reach more people in our community than ever before.”The transaction will bring the total number of medical centers that CareMax operates to 42 and total membership to approximately 66,000 patients, including approximately 26,000 Medicare Advantage members.CareMax plans to deploy multiple near-term growth levers for DNF, including:·Deploying CareMax’s proprietary technology platform, CareOptimize, to provide data, analytics and rules-based decision tools/workflows for DNF care teams to customize high-touch, care and improve medical loss ratios;·Leveraging DNF’s large, high quality medical centers to continue to add multi-specialty care and other ancillary services to provide whole person care to patients in the Central Florida region;·Utilizing CareMax’s sales and marketing infrastructure and health plan relationships to drive organic growth to fill existing capacity in DNF’s clinics (currently at less than 25% capacity); and·Working with the DNF leadership team to identify additional underserved communities in the Central Florida and Tampa Bay markets that would benefit from the CareMax model and new de novo buildouts.The transaction is subject to customary closing conditions and is expected to close during the third quarter. CareMax expects the transaction to be immediately accretive. Additional information regarding the transaction will be included in a Current Report on Form 8-K to be filed by CareMax with the U.S. Securities and Exchange Commission.
