Miami-based Cano Health, which is laying off almost a fifth of its workforce, said Marlow Hernandez, DO, founder and former CEO, is stepping away completely from the value-based care provider.
Mark Kent, interim CEO since June, becomes permanent CEO, effective immediately.
Dr. Hernandez, who is stepping down from the board after his ouster as CEO late June, is the founder of the primary care company, which reported "abysmal" results in the second quarter. Cano Health reported an operating loss of $245.6 million.
A shareholder group, led by billionaire investor Barry Sternlicht, has consistently owned more than a third of Cano Health and has called repeatedly for Dr. Hernandez to leave Cano Health in recent months because of what it termed "staggering underperformance."
Cano Health, which has seen its shares as high as almost $9 in the past year, is currently trading at less than 40 cents.