On Aug. 10, the company released its second-quarter earnings that showed a net loss of nearly $432 million in the first half of 2022 and the announcement of a plan to raise more outside investment to help the company reach profitability.
According to the company’s CFO, Cathy Smith, Bright Health’s board has created a special committee to actively raise capital.
“We have received significant interest from and are in advanced discussions with third-parties and current investors to finalize the capital raise,” she said in the second quarter call with investors.
According to the Star Tribune, the payer has been using reserve funds to cover its losses.
“Based on our projected cash flows and absent any other action, Bright Health Group will require additional liquidity to meet its obligation as they come due in the 12 months following the date the statutory basis financial statements are issued,” the company said in the Florida filing. “These conditions raise substantial doubt about the company’s ability to continue as a going concern.”
During the second-quarter call, Bright Health CEO Mike Mikan said it had always planned to look for additional outside investment to break even.
“We are actively working to satisfy our capital needs through 2023 and beyond,” a Bright Health spokesperson told the Star Tribune. “Bright Health’s business is now in a much more capital-efficient stage, and we continue to focus on balanced growth while driving improvements in profitability.”
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