Bright Health in danger of being booted from NYSE – Healthcare Dive

Bright can regain compliance at any point during the next six months if, on the last trading day of the calendar month, its stock closed above $1 and had an average closing price of at least $1 over the month. If Bright can’t regain compliance, the NYSE will suspend and delist its stock.
If a stock is delisted, it can continue to trade over the counter, but it’s likely the market will be less liquid. In 2021, more than 370 stocks were delisted from major U.S. stock exchanges, according to Stock Analysis.
One measure Bright is considering is a reverse stock split. That’s when existing shares are consolidated into fewer but more valuable shares, boosting a company’s stock price. The move would need to be approved by Bright’s shareholders at its next annual meeting.
Bright declined to comment for this story.
Bright, which went public in June of last year, has struggled during the coronavirus pandemic with medical costs. As a result of mounting losses, Bright has shrunk the size of its business over the past year in a bid to reach profitability in 2023.
Bright plans to do this in part by focusing on higher-margin businesses, including care delivery and provider enablement business NeueHealth, which provides care through 180 owned and affiliated clinics and is expected to make up a larger share of Bright’s revenue in the future.
After announcing plans to exit six states in the Affordable Care Act marketplace starting next year, Bright in October further slashed its footprint again, leaving the marketplace entirely and winnowing its Medicare Advantage footprint to just California and Florida. Less than a month later, Bright said it also planned to stop MA operations in Florida.
Bright’s stock has plunged this year among the business cuts, along with leadership overhaul, layoffs and fines from regulators.
 
Bright reported a net loss of almost $432 million in the first half of 2022. The company also reported a loss of $259 million in the third quarter.
Bright has been using reserve funds to cover its losses, and told Florida regulators it had “substantial doubt” it could remain financially viable without outside investment, according to reporting from the Star Tribune.
On its third-quarter earnings call, management said they were taking a number of steps to shore up its finances. That includes working with state regulators to wind down its ACA and MA businesses, which should allow Bright to recoup $250 million after it’s paid out the claims due.
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Cases ranged from improper psychiatric treatment to providing false Medicare claims and illegal kickback schemes.
The pandemic has prompted nurses and residents in the state to rethink working conditions and what they will endure. Some have walked off the job, demanding better contracts, and some residents organized for the first time.
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Cases ranged from improper psychiatric treatment to providing false Medicare claims and illegal kickback schemes.
The pandemic has prompted nurses and residents in the state to rethink working conditions and what they will endure. Some have walked off the job, demanding better contracts, and some residents organized for the first time.
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