Interest in Subsidiaries and Affiliates
Cano Health, Inc. (CHI) owns the equity interests in Primary Care (ITC) Intermediate Holdings, LLC (PCIH)
through 67.72% economic interests and 100% voting interests. PCIH owns 100% of the membership interests in Cano Health, LLC (CH LLC). CH LLC directly or indirectly owns 100% of the membership interests in all remaining Debtors.
In order for the Debtors to deliver healthcare services to patients in certain markets, the Debtors contracted with entities (the
Physicians Groups) that enabled the Debtors to employ healthcare providers to contract with managed care payors. Each Physician Group contracted with the Company through a Management Services Agreement (MSA),
which allowed such Physician Groups to provide certain services. Prior to the Petition Date, the Debtors terminated such MSAs and have sold all or substantially all of the assets of the Physicians Groups.
Notwithstanding such agreements having been terminated, the MOR for CH LLC provides financial figures for the Physician Groups, which include
Cano Health Texas, PLLC, Cano Health Nevada, PLLC, Cano Health California, PC, CHC Provider Network, PC and Cano Health Illinois, PLLC.
Reservation
of Rights
This MOR is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying
with the monthly reporting requirements of the Debtors Chapter 11 Cases. The unaudited financial information has been derived from the Debtors books and records. The information presented herein has not been subject to all procedures
that typically would be applied to financial information in accordance with U.S. GAAP. Upon the application of such procedures, the Debtors believe that the financial information could be subject to material change. The information furnished in this
MOR includes normal recurring adjustments but does not include all of the adjustments that typically would be made for interim financial information presented in accordance with U.S. GAAP.
Although the Debtors made commercially reasonable efforts to ensure the accuracy and completeness of this MOR, inadvertent errors and
omissions may occur. Accordingly, the Debtors hereby reserve all of their rights to dispute the nature, validity, status, enforceability, or executory natures of any claim amount, agreement, representation, or other statement set forth in this MOR.
Further, the Debtors reserve the right to amend or supplement this MOR in all respects, as may be necessary and appropriate, but shall be under no obligation to do so. Nothing contained in this MOR shall constitute a waiver of any of the
Debtors rights or an admission with respect to the Chapter 11 Cases.
The Debtors management prepared this MOR with the
assistance of their advisors, and relied on financial data derived from their books, records, and historical financial statements that were available at the time of this MORs preparation. Eladio Gil, the Debtors Interim Chief Financial
Officer, has signed each MOR. Mr. Gil is an authorized signatory for each of the Debtors. In reviewing and signing this MOR, Mr. Gil necessarily has relied upon the efforts, statements, advice, and representations of various personnel
employed by the Debtors and their advisors. Mr. Gil has not (and could not have) personally verified the accuracy of each statement, representation, and answer contained in each MOR.
MOR Form
Part 1: Cash Receipts and
Disbursements
Reported cash receipts may include intercompany
Debtor-to-Debtor transactions given the nature of the Debtors cash management system and the reporting requirements for this MOR. Reported cash disbursements
exclude any intercompany Debtor-to-Debtor transactions and only represent payments made to external third parties. As a result, the estimated disbursements reported on
Part 1 of the MOR may not agree with the Debtors bank statements or the Debtors books and records. Reconciling differences will exist between bank statement balances and balance sheet cash balances due to routine timing differences
between payment execution in the Debtors financial system and disbursement of funds from Debtor bank accounts.
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Official MOR Form |
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Monthly Operating Report About Debtor Entities Value, Operations, Profitability and Cash Flows |
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