Astrana Health Completes $708M Acquisition of Prospect Health to Expand Integrated Care

Astrana Health has completed the acquisition of Prospect Health for $708 million, a reduction from the initially announced $745 million price. Prospect Health is expected to add approximately $1.2 billion in revenue and $81 million in adjusted EBITDA annually to Astrana's portfolio. The acquisition targets synergy gains estimated between $12 million and $15 million within 12 to 18 months post-merger.

Astrana Health operates an extensive healthcare network comprising over 20,000 providers and 1.6 million patients, delivering integrated care across primary, specialty, ancillary, and virtual care settings. Prospect Health's network encompasses 11,000 providers in Southern California, Texas, Arizona, and Rhode Island, serving 600,000 members across Medicare Advantage, Medicaid, and commercial insurance plans.

Prospect Health also holds a California Restricted Knox-Keene health plan license, subject to regulation by the California Department of Managed Health Care (DMHC), allowing it to operate managed care services including a management services organization, specialty pharmacy, and a hospital. The Knox-Keene license framework governs health plan operations under California state law.

This acquisition aligns with Astrana Health's broader strategic growth, which includes its 2017 merger to form Apollo Medical Holdings, rebranding to Astrana Health, and the acquisition of Collaborative Health Systems from Centene Corporation in 2023. Partnerships with technology and payer entities, such as Elation Health and Anthem Blue Cross, have supported the expansion of risk-bearing organizations and enhanced patient access.

The collaboration with Anthem Blue Cross and Allied Pacific IPA highlights Astrana Health's efforts to improve care delivery in previously underserved regions through dedicated clinics and integrated care networks. These moves reflect a trend in healthcare towards consolidation and vertically integrated care models focused on value and patient outcomes.

Overall, the deal represents a significant consolidation in the integrated care delivery market, reinforcing Astrana Health's position in managing diverse patient populations across multiple states and payer types. The transaction also underscores ongoing industry shifts towards partnerships and acquisitions that expand provider networks and capabilities in risk-based care management.