US-based Astrana Health has closed its acquisition of Prospect Health, a care delivery network, for a total purchase price of $708m.

With a network of more than 11,000 providers, Prospet Health offers coordinated care to approximately 600,000 members.

The network covers various states in the US, including Arizona, Rhode Island, Southern California, and Texas, serving Medicaid, Medicare Advantage, and Commercial business lines.

Prospect Health's operations include a health plan, a management services organisation, a speciality pharmacy, and an acute care hospital.

The acquisition price reflects a decrease from the initially stated $745m in November 2024.

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."

Astrana projects that Prospect Health will contribute a total revenue of approximately $1.2bn and $81m in adjusted EBITDA annually.

In addition, Astrana anticipates achieving $12m to $15m of synergies within the next one to one-and-a-half years.

The company has updated its 2025 full-year guidance to a revenue range of $3.1bn to $3.3bn and adjusted EBITDA between $215m and $225m, considering Prospect Health's half-year contribution.

Following the transaction, Astrana's net debt is expected to be approximately $700m.

The company's management is focused on lessening the net leverage ratio to below 2.5 times within the next one to one-and-a-half years.

Truist Securities led a consortium of banks that offered the term loan for the purchase.

J P Morgan acted as the exclusive financial adviser to Astrana during the transaction.

The acquisition follows Astrana's previous acquisition of Collaborative Health Systems in October last year, which also aimed to broaden its care delivery capabilities.