Alhambra, Calif.-based Astrana Health has entered into a $745 million definitive agreement to acquire certain assets and businesses from Los Angeles-based Prospect Health System.
Here are five things to know:
1. Astrana will acquire Prospect Health Plan, Prospect Medical Groups, Prospect Medical Systems, RightRx and Tustin, Calif.-based Foothill Regional Medical Center under the agreement, according to a Nov. 8 news release.
2. Astrana, formerly known as Apollo Medical Holdings, will make "significant investments" in Prospect to ensure improved care access and quality. The sale is expected to wrap in the middle of 2025.
3. "We believe the strong cultural alignment, cohesive missions, and clear financial and operational synergies between our companies make Astrana the ideal partner for us," Jim Brown, CEO of Prospect, said in the release. "We look forward to working together to further our joint mission of delivering high-quality, affordable, and accessible care for all."
4. Birmingham, Ala.-based Medical Properties Trust, one of the world's largest real estate owners, expects around $200 million in total proceeds from the sale, according to a Nov. 8 news release. Most of the cash is expected in the first half of 2025, with $50 million expected by 2027. MPT leases multiple properties to Prospect, according to MPT's third quarter financial report.
5. Prospect comprises around 3,000 primary care providers and 10,000 specialists across Arizona, Southern California, Texas and Rhode Island.