Astrana Health (ASTH) has announced a definitive agreement to acquire Prospect Health, encompassing various businesses and assets associated with Prospect Health System. This acquisition includes its licensed healthcare service plan in California, medical groups across California, Texas, Arizona, and Rhode Island, a management service organization, a pharmacy, and the Alta Newport Hospital operating as Foothill Regional Medical Center— a fully accredited acute care facility with 177 licensed beds.
The purchase price for the Prospect assets and businesses is set at $745 million. Astrana intends to finance this acquisition through a blend of existing cash reserves and a senior secured bridge loan provided by Truist Bank and J.P. Morgan. The company is also planning substantial investments in Prospect and its infrastructure post-acquisition.
