Clover Health CEO Vivek Garipalli will step down and be succeeded by Andrew Toy at the start of next year, the company announced Monday.
Toy, who is currently president and chief technology officer, will take over Jan. 1, when Garipalli will become executive chair. Garipalli will be active at Clover Health for the foreseeable future, Toy said in a news release.
“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.”
Garipalli co-founded the Medicare Advantage startup in 2014. The company went public last year through a $3.7 billion special purpose acquisition deal with Social Capital, a blank-check company headed by social media investor Chamath Palihapitiya. Clover Health’s stock price has fallen nearly 80% since then; shares closed at $3.40 on the Nasdaq Monday. The company reported the highest per-member loss among for-profit, publicly traded insurers last year, when it lost more than $4,500 per enrollee.
The company more than doubled its revenue to $846.7 million during the second quarter, Clover Health reported Monday. The insurtech cut its net loss by 67.1% to $104.2 million. Clover Health counted 86,629 Medicare Advantage members, a 30.1% increase. The company’s Clover Assistant artificial intelligence platform doubled the number of patients whose physicians manage their care to 168,777.
Garipalli invested more than $40 million of his own money in Clover Health, did not accept a salary or never sold his shares, he said in the news release.
Toy, who oversaw the Clover Assistant launch that helped the company enter the fee-for-service Medicare market, has been Garipalli’s designated successor since 2018, Clover Health said in the news release. Toy joined Clover Health from Google.