Astrana Well being acquires Prospect Well being for $745 million
Astrana Well being, a healthcare provider-focused firm, and its affiliated skilled entities, have entered right into a definitive settlement to accumulate Prospect Well being.
This acquisition consists of Prospect Well being System's companies and property, reminiscent of its California licensed well being care plan; medical teams in California, Texas, Arizona and Rhode Island; a administration companies group; a pharmacy and a totally accredited acute care hospital with 177 accredited beds.
The acquisition is valued at $745 million, with Astrana financing the transaction with money and a $1.09 billion senior secured bridge dedication from Truist Financial institution and JP Morgan.
The deal is anticipated to shut in mid-2025, topic to regulatory approvals and customary closing circumstances.
Astrana President and CEO Brandon Okay Sim stated: “The acquisition of Prospect would signify the mix of two organizations with a decades-long historical past of enabling unbiased healthcare suppliers and coordinating the supply of high-quality take care of all.
“This strategic transaction will considerably broaden our provider community and improve our skill to supply larger entry, high quality and worth to our members. Prospect's established presence in key markets additionally opens up new alternatives for Astrana, particularly in geographically adjoining Orange County, California, the place now we have restricted operations in the present day.”
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Prospect Well being is an built-in healthcare supply system that facilitates and coordinates scientific care.
Prospect has a community of roughly 3,000 major care suppliers and 10,000 specialists in Southern California, Texas, Arizona and Rhode Island.
It gives well being care to roughly 610,000 members in Medicare Benefit, Medicaid and Industrial verticals.
Jim Brown, CEO of Prospect, stated: “We’re excited concerning the alternative to work with Astrana to construct a bigger, stronger and extra coordinated healthcare community that we count on will profit our communities by rising entry , high quality, worth and effectivity.
“We consider that the sturdy cultural alignment, cohesive missions and clear monetary and operational synergies between our firms make Astrana the perfect associate for us. We stay up for working collectively to advance our shared mission of delivering high-quality, reasonably priced and accessible take care of all.”
Astrana plans to make important investments in Prospect and its infrastructure to make sure healthcare stays native and customized throughout the 4 US states.
For the twelve months ended December 31, 2024, Prospect is anticipated to generate roughly $1.2 billion in revenues with adjusted EBITDA of roughly $81 million.
