Astrana Health Closes $708Mn Acquisition of Prospect Health

The final acquisition amount marks a revision from the initially announced $745 million in November 2024.

Astrana Health has officially acquired Prospect Health for $708 million. Prospect Health, a U.S.-based care delivery network, supports coordinated care for around 600,000 members through a network of over 11,000 providers.

Operating across Arizona, Rhode Island, Southern California, and Texas, Prospect Health serves Medicaid, Medicare Advantage, and Commercial segments.

Its operations include a health plan, a management services organization, a specialty pharmacy, and an acute care hospital.

The final acquisition amount marks a revision from the initially announced $745 million in November 2024.

Revenue and Financial Guidance Update

Astrana Health estimates that Prospect Health will contribute approximately $1.2 billion in total revenue and $81 million in adjusted EBITDA annually. The company also anticipates generating $12 million to $15 million in synergies over the next 12 to 18 months.

Following the acquisition, Astrana has updated its 2025 full-year guidance to a revenue range of $3.1 billion to $3.3 billion and adjusted EBITDA between $215 million and $225 million. The updated forecast includes Prospect Health's contribution for half the year.

Astrana’s net debt is now expected to be around $700 million, with plans to reduce its net leverage ratio to below 2.5 times within the next 12 to 18 months.

Transaction Details

Truist Securities led a consortium of banks providing the term loan for the acquisition. J.P. Morgan served as the exclusive financial adviser to Astrana Health during the transaction.

Astrana President and CEO Brandon Sim said, "We are excited to welcome Prospect Health's physicians, providers, and team members to Astrana Health. Together, we will further accelerate our mission to drive consistent, coordinated, high-quality patient outcomes at scale, ultimately driving greater value across the healthcare ecosystem."

This acquisition follows Astrana’s earlier purchase of Collaborative Health Systems in October 2024.

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