Healthcare firm Astrana Well being has finalized the acquisition of Prospect Well being, an built-in care supply community, for $708 million, decrease than the initially introduced value of $745 million when the corporate first unveiled its acquisition plans in 2024.
In a press release, Astrana stated that Prospect Heath will contribute nearly $1.2 billion in complete income and $81 million in adjusted earnings earlier than curiosity, taxes, depreciation and amortization on an annual foundation.
Moreover, Astrana expects to attain $12 million to $15 million of synergies over the following 12 to 18 months.
Astrana Well being has greater than 20,000 suppliers and greater than 1.6 million sufferers through its affiliated supplier networks, administration companies and built-in care supply clinics, which embrace major, specialty, ancillary and 24/7 digital care.
Prospect Well being’s community contains 11,000 suppliers throughout Southern California, Texas, Arizona and Rhode Island. It has 600,000 members throughout Medicare Benefit, Medicaid and industrial traces of enterprise.
The corporate operates a California Restricted Knox-Keene-licensed well being plan, a administration companies group, a specialty pharmacy and an acute care hospital.
In response to the California Division of Managed Well being Care (DMHC), a Knox-Keene-licensed well being plan relies on the Knox-Keene Well being Care Service Plan Act of 1975, which is a set of legal guidelines or statutes handed by the California state legislature that gives the DMHC with the authority to manage healthcare service plans.
THE LARGER TREND
In 2017, ApolloMed and Community Medical Administration merged and fashioned Apollo Medical Holdings.
Final 12 months, the corporate rebranded as Astrana Well being and bought Collaborative Well being Programs (CHS), a administration companies group with greater than 129,000 beneficiaries throughout 17 states. The Centene Company beforehand owned CHS.
That very same 12 months, Astrana Well being partnered with Elation Health, enabling the 2 organizations to scale risk-bearing entities, together with accountable care organizations and clinically built-in networks, supported by current and future affiliate suppliers.
Additionally in 2024, Astrana Well being partnered with California-based Anthem Blue Cross and Allied Pacific IPA, a part of Astrana Well being.
Astrana Well being and Anthem Blue Cross collaborated to broaden entry to high-quality affected person care in beforehand underserved member communities.
Astrana Well being opened and managed clinics offering care solely for Anthem Blue Cross and Allied Pacific IPA members.
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