Value-based care provider NeueHealth will convert to a privately held company within months, CEO Mike Mikan said Thursday.
The company formerly known as Bright Health Group and its majority owner, venture capital firm New Enterprise Associates, announced the plan in December. Shareholders approved the $1.3 billion transaction Wednesday, Mikan said during a call with investor analysts.
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Bright Health had a $924 million initial public offering in 2021 when it debuted on the New York Stock Exchange at $18 a share as part of a mostly unsuccessful wave of so-called insurtechs aiming to disrupt the health insurance sector.
NeueHealth stock opened at $6.93 on Thursday and its market capitalization was about $60 million.
Bright Health sought to tap into the lucrative Medicare Advantage and health insurance exchange markets but suffered financial difficulties almost from the start. The company abandoned its insurance line in 2023 and divested its final health plan assets to Molina Healthcare last year.
NeueHealth operates a chain of primary care clinics in Florida and participates in the Medicare Shared Savings Program accountable care organizations and ACO REACH, or ACO Realizing Equity, Access and Community Health. The company’s first-quarter net loss totaled $10.8 million, 159.7% higher than in the year-ago period, as revenue fell 12% to $215.8 million, NeueHealth reported Thursday.
The Doral, Florida-based company will go private around the middle of this year, Mikan said. Eleven states where Bright Health previously sold health insurance must approve the transaction, NeueHealth disclosed in a filing to the Securities and Exchange Commission last month.
