The company co-founder and president will step into the role vacated by founder Vivek Garipalli as part of a succession plan.
Changes are ahead for Clover Health, which announced president and co-founder Andrew Toy will be the new CEO from the start of next year.
Toy will transition into the role while current CEO and founder Vivek Garipalli continues his responsibilities as executive chairperson and works closely with Toy in what the company is calling an "inherently symbiotic" relationship.
Garipalli revealed the move is the culmination of a succession plan Clover has had in place since Toy joined as CTO and led the development of Clover Assistant.
"Andrew is a unique technologist and business strategist," Garipalli said in a statement. "He's a true founder in every sense of the word — having built companies from scratch, he has an abundance of grit needed to solve the hardest problems in healthcare. He has the fastest learning speed of anyone I've ever met, and I believe his transition to CEO will give Clover a strategic edge overnight that will only continue to pay dividends for our mission moving forward."
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Toy stated Garipalli will continue at the company in a more strategic fashion.
"While Vivek would no doubt continue to be an incredibly successful CEO of Clover for years to come, I know that his true passion is big picture strategy and the rapid, scrappy uncertainty that exists in the building stages of a company," Toy said. "In this more strategic role, he can continue to lean into his strengths and bring outsized value to Clover and to me as CEO."
Clover announced the executive move on the same day it released its second quarter financial report, which showed a significant rise in year-over-year revenue dampened by skyrocketing operating expenses.
Second quarter revenue was $846.70 million, compared to $412.47 million over the same period in 2021, but total operating expenses also shot up from $594.33 million in Q2 of last year to $949.25 million for this year.
The result was a net loss of $104.18 million, which is down from the $317.61 million lost in the second quarter of 2021.
"Our focus on building a sustainable, intelligent growth engine has led to a reduction in MCRs and improvement in operational efficiencies which we believe is the foundation of our progress toward profitability." Toy said in a statement.
He added: "Our technology platform is moving from strength to strength as Clover Assistant penetration continues to show significant growth. We believe there is tremendous opportunity and potential to continue iterating and advancing Clover Assistant's clinical capabilities. We believe each improvement supports physicians in catching and treating conditions earlier to increase the health and well-being of their patients while simultaneously reducing costs for the healthcare system."
Jay Asser is the CEO editor for HealthLeaders.