ALHAMBRA, Calif., Nov. 8, 2024 /PRNewswire/ — Astrana Health, Inc. (“Astrana,” and
together with its subsidiaries and affiliated entities, the “Company”) (NASDAQ: ASTH), a
leading provider-centric, technology-powered healthcare company enabling providers to
deliver accessible, high-quality, and high-value care to all, today announced that it and its
affiliated professional entities have entered into a definitive agreement to acquire Prospect
Health (“Prospect”), which consists of certain businesses and assets relating to Prospect
Health System, including its California licensed health care service plan (Prospect Health
Plan), medical groups in California, Texas, Arizona and Rhode Island (Prospect Medical
Groups), management service organization (Prospect Medical Systems), pharmacy
(RightRx), and Alta Newport Hospital dba Foothill Regional Medical Center, a fully
accredited acute care hospital with 177 licensed beds.
Prospect is an integrated care delivery system which facilitates and coordinates the delivery
of high-quality clinical care for all. With a network of around 3,000 primary care providers and
10,000 specialists across Southern California, Texas, Arizona, and Rhode Island, Prospect
is enabling providers to deliver payer-agnostic, patient-centered care to approximately
610,000 members across Medicare Advantage, Medicaid, and Commercial lines of
business.
“The acquisition of Prospect would represent the combination of two organizations with
decades-long histories of enabling independent providers and coordinating the delivery of
high-quality care for all. We believe that our organizations share a common culture of patient
centricity and a shared mission to provide high-quality care tailored to local communities,”
said Brandon K. Sim, President and CEO of Astrana.
“This strategic transaction will significantly expand our provider network and enhance our
ability to offer increased access, quality, and value for our members. Prospect’s established
presence in key markets also opens new opportunities for Astrana, particularly in
geographically adjacent Orange County, California, where we today have limited operations.
We believe this acquisition continues to solidify Astrana as our nation’s leading healthcare
delivery platform, enabling us to deliver technology-driven, longitudinal, and patient-centered
care to an estimated combined 1.7 million members across the country.”
Jim Brown, CEO of Prospect, said, “We are excited at the opportunity to partner with
Astrana to build a larger, stronger, and more coordinated care delivery network which we
expect will benefit our communities by increasing access, quality, value, and efficiency. We
believe the strong cultural alignment, cohesive missions, and clear financial and operational
synergies between our companies make Astrana the ideal partner for us. We look forward to
working together to further our joint mission of delivering high-quality, affordable, and
accessible care for all.”
Astrana plans to make significant investments in Prospect and its infrastructure in order to
further enhance access and quality of care for patients in local communities. The partnership
between Astrana and Prospect will help ensure that healthcare remains local and
personalized for patients across four states.
Additional details regarding Astrana’s planned acquisition of Prospect can be found on the
Company’s Investor Relations website.
Transaction Details
Under the terms of the agreement, subject to satisfaction of customary conditions, Astrana
plans to acquire the Prospect businesses and assets for a purchase price of $745 million.
Astrana expects to fund the transaction using a combination of cash on hand and a $1,095
million 364-day senior secured bridge commitment provided by Truist Bank and J.P. Morgan.
Prospect is expected to generate approximately $1.2 billion in revenue with expected
adjusted EBITDA of approximately $81 million for the twelve months ending December 31,
2024.
Astrana’s acquisition of Prospect is expected to close in the middle of 2025, subject to
regulatory approval and other customary closing conditions.
About Astrana Health, Inc.
Astrana is a leading provider-centric, technology-powered healthcare company enabling
providers to deliver accessible, high-quality, and high-value care to all. Leveraging its
proprietary end-to-end technology solutions, Astrana operates an integrated healthcare
delivery platform that enables providers to successfully participate in value-based care
arrangements, thus empowering them to deliver high quality care to patients in a costeffective manner.
Headquartered in Alhambra, California, Astrana serves over 12,000 providers and over 1.1
million Americans in value-based care arrangements. Its subsidiaries and affiliates include
management services organizations (MSOs), affiliated independent practice associations
(IPAs), accountable care organizations (ACOs), and care delivery entities across primary,
multi-specialty, and ancillary care. For more information, please visit
www.astranahealth.com.
The M&A market for healthcare companies continues to build on STRATEGIC opportunities. The strategic corporate buyers and private equity investors remain committed to acquiring strong businesses that are well prepared for a transaction. Across the continuum of care, these buyers and investors are looking for well established, profitable businesses and offering prime valuations and options for management.
Do you know the current market value of your business? We do! We are here to help you plan, prepare, explore and succeed in executing your strategic options.
Contact Paragon Ventures for more information.
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