Healthcare company Astrana Health has finalized the acquisition of Prospect Health, an integrated care delivery network, for $708 million, lower than the originally announced price of $745 million when the company first unveiled its acquisition plans in 2024.
In a statement, Astrana said that Prospect Heath will contribute almost $1.2 billion in total revenue and $81 million in adjusted earnings before interest, taxes, depreciation and amortization on an annual basis.
Additionally, Astrana expects to achieve $12 million to $15 million of synergies over the next 12 to 18 months.
Astrana Health has more than 20,000 providers and more than 1.6 million patients via its affiliated provider networks, management services and integrated care delivery clinics, which include primary, specialty, ancillary and 24/7 virtual care.
Prospect Health’s network includes 11,000 providers across Southern California, Texas, Arizona and Rhode Island. It has 600,000 members across Medicare Advantage, Medicaid and commercial lines of business.
The company operates a California Restricted Knox-Keene-licensed health plan, a management services organization, a specialty pharmacy and an acute care hospital.
According to the California Department of Managed Health Care (DMHC), a Knox-Keene-licensed health plan is based on the Knox-Keene Health Care Service Plan Act of 1975, which is a set of laws or statutes passed by the California state legislature that provides the DMHC with the authority to regulate healthcare service plans.
THE LARGER TREND
In 2017, ApolloMed and Network Medical Management merged and formed Apollo Medical Holdings.
Last year, the company rebranded as Astrana Health and acquired Collaborative Health Systems (CHS), a management services organization with more than 129,000 beneficiaries across 17 states. The Centene Corporation previously owned CHS.
That same year, Astrana Health partnered with Elation Health, enabling the two organizations to scale risk-bearing entities, including accountable care organizations and clinically integrated networks, supported by existing and future affiliate providers.
Also in 2024, Astrana Health partnered with California-based Anthem Blue Cross and Allied Pacific IPA, part of Astrana Health.
Astrana Health and Anthem Blue Cross collaborated to expand access to high-quality patient care in previously underserved member communities.
Astrana Health opened and managed clinics providing care exclusively for Anthem Blue Cross and Allied Pacific IPA members.
