Sheppard Mullin represented Prospect Health System ("Prospect") in the sale of certain businesses and assets to Astrana Health, Inc. (NASDAQ: ASTH) ("Astrana"). The $708 million transaction creates a national healthcare delivery platform that will further accelerate the Prospect and Astrana's mission to drive consistent, coordinated, high-quality patient outcomes at scale, ultimately driving greater value across the healthcare ecosystem.
Prospect is a value-based, integrated care delivery network which coordinates the delivery of high-quality care for all. With a network of over 11,000 providers across Southern California, Texas, Arizona, and Rhode Island in its medical groups, Prospect enables providers to deliver payer-agnostic, patient-centered care to approximately 600,000 members across Medicare Advantage, Medicaid, and Commercial lines of business.
As part of the agreement, Astrana acquired Prospect's California licensed health care service plan (Prospect Health Plan), medical groups in California, Texas, Arizona and Rhode Island (Prospect Medical Groups), management service organization (Prospect Medical Systems), pharmacy (RightRx), its fully accredited acute care hospital, Alta Newport Hospital dba Foothill Regional Medical Center and its primary and multi-specialty clinic, Gateway Medical Center.
Prospect's established presence in key U.S. markets opens new geographic opportunities for Astrana, including in the Southwest. Already a leading provider-centric, technology-powered healthcare company, Astrana plans to make significant investments in Prospect and its infrastructure to further enhance access and quality of care for patients in local communities.
The Sheppard Mullin Healthcare team that advised Prospect was led by partners Nioura Ghazni and Eric Klein, with invaluable assistance from Matthew Goldman, Jordan Grushkin, Babak Yousefzadeh, Brian Fong, Megan Rooney, Keith Gercken, Rick Rifenbark, Michael Orlando, Jared Nagley, Tim Reimers, Edward Musharbash, Taylor Holmes, Kanasha Herbert, Alexandria Foster, Jami Fogelhut, Krysten Thomas, Christina Nguyen and Maximilian Fuery.
Read more about the transaction here.