Industry Veteran Clay Thornton Joins Clover Health as CFO of Medicare Advantage

FRANKLIN, Tenn., March 07, 2024 (GLOBE NEWSWIRE) -- Today Clover Health ("Clover" or "the Company") announced Clay Thornton as the newly appointed Chief Financial Officer of its Medicare Advantage (MA) division. Thornton, with an impressive track record spanning over a decade of healthcare financial management and operational leadership, joins as the Company enters the next phase of its lifecycle, targeting Adjusted EBITDA profitability for the full-year 2024¹, while emphasizing a differentiated PPO-first product strategy supported by its state-of-the-art technology and care management platform.

Thornton's expertise in driving financial strategies that bolster quality outcomes, member and provider satisfaction, and sustainable business expansion makes him an ideal fit for Clover. His notable achievements include leading a $3BN revenue business as Regional Chief Financial Officer and Vice President of Operations for Humana Inc. He later spearheaded Humana’s Medicare Advantage membership growth as the company's Head of National Growth Strategy. These experiences have sharpened his skills in managed care strategy and financial operations, preparing him to lead Clover's MA financial strategy.

"I am thrilled to join the team at Clover Health and drive forward their PPO-first approach in the Medicare Advantage space," said Thornton. "Clover's innovative use of its proprietary Clover Assistant technology and advanced care management systems sets a new standard in managed care, offering an unparalleled opportunity to reshape healthcare for the better. I am committed to leveraging my background to enhance Clover's financial and operational performance, ensuring we deliver on our promise of improved health outcomes and member satisfaction."

Immediately prior to joining Clover, Thornton's strategic acumen was further honed in the venture capital and private equity sectors, where he provided leadership and advisory services to startups and small-to-mid-sized businesses. This blend of experience has equipped him with a unique perspective on driving growth and operational excellence in dynamic and competitive environments.

Andrew Toy, CEO of Clover Health, commented on Thornton's appointment, stating, "Clay's extensive background in healthcare finance and strategic growth, combined with his innovative spirit, aligns perfectly with Clover's mission. His leadership will be instrumental in advancing our PPO-first approach, ensuring we continue to thrive in Medicare Advantage through our technology-driven, patient-centered care model."

About Clover Health

Clover Health (Nasdaq: CLOV) is a physician enablement company committed to bringing access to great healthcare to everyone on Medicare. This includes a health equity-based focus on seniors who have historically lacked access to affordable, high-quality healthcare. Our strategy is powered by our software platform, Clover Assistant, which is designed to aggregate patient data from across the healthcare ecosystem to support clinical decision-making and improve health outcomes through the early identification and management of chronic disease.

About Non-GAAP Financial Measures:

We use non-GAAP measures including Adjusted EBITDA. These non-GAAP financial measures are provided to enhance the reader's understanding of Clover’s past financial performance and our prospects for the future. Clover’s management team uses these non-GAAP financial measures in assessing Clover’s performance, as well as in planning and forecasting future periods. These non-GAAP financial measures are not computed according to GAAP, and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental to and should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the reconciliations of these non-GAAP financial measures to the comparable GAAP measures, together with other important financial information, included in our filings with the Securities and Exchange Commission (the “SEC”), on the Investor Relations page of our website at investors.cloverhealth.com.

Adjusted EBITDA is a non-GAAP financial measure defined by us as net loss before interest expense, amortization of notes and securities discount, depreciation and amortization, gain on investment, stock-based compensation expense, premium deficiency reserve benefit, restructuring costs, non-recurring legal expenses and settlements, and expenses attributable to Seek. Adjusted EBITDA is a key measure used by our management team and the board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operating plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA provides investors and others useful information to understand and evaluate our operating results in the same manner as our management team and our board of directors.

Forward-Looking Statements

Please note that this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding future events and Clover’s future results of operations, financial position, business strategy and future plans. Forward-looking statements are not guarantees of future performance, and you are cautioned not to place undue reliance on such statements. In some cases, you can identify forward looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “going to,” “can,” “could,” “should,” “would,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “outlook,” “forecast,” “guidance,” “objective,” “plan,” “seek,” “grow,” “target,” “if,” “continue” or the negative of these words or other similar terms or expressions that concern Clover Health’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this press release include, but are not limited to, statements regarding expectations related to Clover’s profitability, liquidity, future performance, future operations and future results. These statements are subject to known and unknown risks, uncertainties and other factors that may cause Clover’s actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this report. Additional information concerning these and other risk factors is contained in Clover’s most recent Annual Report on Form 10-K, filed with the SEC on March 1, 2023 and in our subsequent Quarterly Reports on Form 10-Q filed with the SEC on May 9, 2023, August 8, 2023 and November 6, 2023, in each case where relevant, including the Risk Factors sections therein, and in its other filings with the SEC. The forward-looking statements included in this press release are made as of the date hereof. Except as required by law, Clover undertakes no obligation to update any of these forward-looking statements after the date of this press release or to conform these statements to actual results or revised expectations.

Press Contact:

Andrew Still-Baxter

   

Investor Relations Contact:

Ryan Schmidt

¹ Adjusted EBITDA is a non-GAAP financial measure. Additional information about the Company's non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures.” Reconciliation of projected Adjusted EBITDA to Net loss, the most directly comparable GAAP measure, is not provided because Stock-based compensation expense, which is excluded from Adjusted EBITDA (non-GAAP), cannot be reasonably calculated or predicted at this time without unreasonable efforts.