(Bloomberg) -- The chief executive of ChenMed LLC has exited after less than six months and former CEO Chris Chen, the son of the firm’s founder, is stepping back into the role for the Medicare-focused clinic chain, the company confirmed to Bloomberg.

Chen takes over for Steve Nelson, a former UnitedHealth Group executive who was named CEO of ChenMed in January. Nelson left the organization by “mutual agreement,” according to a ChenMed spokesperson. Nelson joined the firm in 2022. He previously served as president of ChenMed and CEO of its JenCare division.

ChenMed is a fast-growing chain of health clinics focused on seniors in private Medicare Advantage health plans. Founded as a small family practice, it now has more than 100 locations in 15 states, according to its website. 

The company was in talks to sell a majority stake to Walmart Inc. last year, Bloomberg reported. But Walmart recently reversed course on its ambitious plans for health-care delivery.

Clinics like ChenMed’s typically get paid a percentage of their patient’s insurance premiums and take on the financial risk for those patients’ medical costs. That model, sometimes called value-based care, has driven growth of senior-focused chains including CVS Health’s Oak Street Health brand and Humana’s CenterWell clinics. 

But value-based care has been facing challenges as Medicare has been tightening payments and cracked down on certain practices that boosted revenue.

©2024 Bloomberg L.P.