CLOVER HEALTH INVESTMENTS, CORP. /DE (CLOV): restructuring charge — Clover Health to cut 10% of workforce, move operations to UST HealthProof; expects $30M annual savings

CLOVER HEALTH INVESTMENTS, CORP. /DE

Partnership with UST HealthProof to handle core Medicare Advantage operations (claims, enrollment, contact center) through 2028.
Reduction in force eliminates ~10% of workforce; expects $7-9M in restructuring charges in 1H2023.
Net annual cost savings of ~$30M expected beginning in 2024 from the transformation initiatives.
Master Services Agreement with UST HealthProof includes fixed monthly per-member fees; renewable after initial term.
Company reaffirms focus on profitability and disciplined growth in core Medicare Advantage markets.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

CLOVER HEALTH INVESTMENTS, CORP. /DE announced a restructuring with charges of approximately $7.0 to $9.0 million affecting core plan operations and corporate restructuring (approximately 10% of the Company’s workforce).

Type: restructuring
Charge: approximately $7.0 to $9.0 million
Affected area: core plan operations and corporate restructuring
Headcount: approximately 10% of the Company’s workforce

Exact text from the filing

resulted in the elimination of approximately 10% of the Company’s workforce. The Company expects to record total charges related to the initiatives of approximately $7.0 to $9.0 million, primarily all of which will result in future cash expenditures. These charges are expected to be recorded in the first and second quarters of 2023, and to

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Source: SEC EDGAR

accession 0001801170-23-000021

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