Alhambra-based Astrana Health Inc. To Acquire Prospect Medical Systems
Alhambra-based Astrana Health Inc. agreed to acquire Prospect Medical Systems Inc. from Prospect Medical Holdings Inc. for $745 million on November 8. The acquisition includes certain businesses and assets relating to Prospect Health System, including its California-licensed healthcare service plan, medical groups in California, Texas, Arizona and Rhode Island, a management service organization, pharmacy (RightRx), and the 177-bed Foothill Regional Medical Center.
Prior to the acquisition, Astrana Health served more than 12,000 providers and 1.1 million members in value-based care arrangements. The number of members will jump to approximately 1.7 million following the acquisitions.
“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, where we today have limited operations,†said Brandon Sim, Astrana chief executive, in a statement.
The acquisition is expected to close in the middle of 2025.
