CLOVER HEALTH INVESTMENTS, CORP. /DE (CLOV): restructuring charge — Clover Health exits ACO REACH, expects $8M-$10M charges; sees faster path to profitability

CLOVER HEALTH INVESTMENTS, CORP. /DE

Board decided to exit CMS ACO REACH Program; notice delivered Dec 1, 2023, effective end of 2023 performance year.
Total charges estimated at $8M to $10M, including $6M non-cash impairment in Q4 2023.
CEO says no clear line to profitability in ACO REACH; Medicare Advantage business making swifter strides.
Exit has no impact on ACO REACH beneficiaries; Clover will fulfill 2023 obligations.
Company expects Adjusted EBITDA profitability for full-year 2024.

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 $8 million to $10 million affecting ACO REACH Program.

Type: restructuring
Charge: approximately $8 million to $10 million
Affected area: ACO REACH Program

Exact text from the filing

the Company expects to incur total charges related to the exit from the ACO REACH Program of approximately $8 million to $10 million, the majority of which are non-cash in nature as described in Item 2.06 below. These charges also include severance costs and legal costs, some of which may result in future cash expenditures. Exit activities are expected to conclude by the end of 2024.

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

CLOVER HEALTH INVESTMENTS, CORP. /DE announced a impairment with charges of approximately $6 million.

Type: impairment
Charge: approximately $6 million

Exact text from the filing

the Company expects to record a non-cash impairment charge in the fourth quarter of 2023 of its assets in an estimated amount of approximately $6 million.

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CLOVER HEALTH INVESTMENTS, CORP. /DE filing history →

Source: SEC EDGAR

accession 0001801170-23-000115

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