#United States #Astrana Health #NASDAQ ASTH #Alhambra #Prospect Health

Astrana Health Completes Strategic Acquisition of Prospect Health

On July 1, 2025, Astrana Health, Inc., a technology-driven healthcare organization focused on delivering high-quality, patient-centered care, successfully concluded its acquisition of Prospect Health. This strategic move aims to enhance Astrana's ability to provide exceptional healthcare services to communities across the United States.

Overview of the Acquisition

Astrana Health, trading under NASDAQ: ASTH, has made headlines with this latest acquisition of Prospect Health, an integrated care delivery network valued at approximately $708 million. Initially announced at $745 million, the final purchase price reflects Astrana’s commitment to maintaining disciplined financial practices while recognizing the value Prospect Health brings to the table.

Prospect Health boasts a robust network consisting of over 11,000 healthcare providers spread across Southern California, Texas, Arizona, and Rhode Island. Its model facilitates the coordination of high-quality, value-based care for roughly 600,000 members, encompassing various lines of business, including Medicare Advantage, Medicaid, and commercial plans. Furthermore, Prospect Health operates a fully-accredited acute care hospital and a specialty pharmacy, alongside a health plan licensed under California's Knox-Keene Act.

Vision and Strategic Goals

Brandon Sim, President and CEO of Astrana, expressed enthusiasm about the acquisition: "We are excited to welcome Prospect Health's physicians, providers, and team members to Astrana Health. Collaboratively, we strive to enhance patient outcomes by ensuring consistent, coordinated healthcare on a larger scale, thereby increasing value throughout the healthcare ecosystem."

With this acquisition, Astrana anticipates generating around $1.2 billion in annual revenue and an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of approximately $81 million, further solidifying its financial performance in 2025. Amidst synergy realization projections ranging from $12 to $15 million over the next year and a half, the company is poised for significant growth.

Financial Outlook and Guidance

In light of the new addition to its portfolio, Astrana has updated its guidance for the fiscal year 2025. The projected total revenue is now between $3.1 billion and $3.3 billion, with an adjusted EBITDA forecast of $215 million to $225 million. This update reflects an integrated approach and management's commitment to optimizing the benefits of the acquisition.

Following the transaction, Astrana reports having approximately $700 million in net debt. The company aims to reduce its net leverage ratio to below 2.5 times within the next year or so, demonstrating fiscal prudence post-acquisition.

Support and Collaboration

In facilitating this substantial acquisition, Truist Securities led a consortium of banks that provided the necessary financing. J.P. Morgan acted as the exclusive financial advisor to Astrana during this transformative transaction.

Looking Ahead

With the integration of Prospect Health, Astrana Health is set to continue its mission of enhancing healthcare accessibility and delivering value-driven medical services to patients. Supporting over 20,000 providers and more than 1.6 million patients in various care arrangements, Astrana is dedicated to creating a healthcare system that prioritizes better outcomes, patient experiences, and provider well-being. For additional information, you can visit their official website at www.astranahealth.com.

The future looks promising for Astrana Health as it forges ahead into a new chapter of growth and impact, committed to elevating healthcare standards and promoting holistic patient care across the nation.