ALHAMBRA, Calif., July 25,
2024 /PRNewswire/ -- Astrana Health, Inc.
("Astrana"), together with its subsidiaries and affiliated entities
("the Company") (NASDAQ: ASTH), a leading provider-centric,
technology-powered healthcare company enabling providers to deliver
accessible, high-quality, and high-value care to all, today
announced it has entered into a definitive agreement to acquire
Collaborative Health Systems ("CHS"), a management services
organization serving more than 129,000 beneficiaries across 17
states and a company of Centene Corporation (NYSE:CNC) ("Centene"),
a leading healthcare enterprise focused on transforming the health
of the communities it serves. The acquisition facilitates the
expansion of both Astrana's and CHS' payer-agnostic care delivery
capabilities, which serve members across all lines of business, and
further empower CHS' providers in the delivery of care to the
communities it serves. Astrana and Centene also share a mutual
commitment to providing high-quality and coordinated care to
members and will continue to work together to expand the scope of
their existing value-based partnerships in order to advance that
joint mission.
"With this acquisition, we believe Astrana will be even better
positioned to deliver accessible, high-quality, and high-value care
to more patients across the nation," said President and CEO of
Astrana Health, Brandon Sim. "CHS
has built a scaled and impactful value-based care ecosystem in
markets spanning the South and East Coast. We believe combining
Astrana's robust technology platform and care model with CHS's
strong provider base and deep payer partnerships will accelerate
our goal of organizing and empowering providers while elevating the
healthcare experience for patients throughout the country."
CHS has built a highly complementary provider footprint across
several states, including key markets such as Connecticut, Georgia, Maryland, New
Mexico, and Virginia, as
well as a scaled ecosystem of more than 350 primary care physicians
across Texas, where Astrana
already has a growing presence. Astrana plans to leverage its
proven Care Enablement platform, a set of care management tools and
technology, including value-based contracting and credentialing,
AI-driven population health analytics, its NCQA®-certified
Healthcare Effectiveness Data and Information Set gaps in care
engine, care management and disease management platform, and other
administrative services to further advance improvements in patient
outcomes.
"Astrana shares CHS' commitment to improving providers'
experiences in delivering care and is well positioned to support
CHS' future growth," said Senior Vice President of Clinical and
Specialty Services at Centene, Sarah
Baiocchi. "We look forward to Astrana continuing to be a key
partner to our Medicare business, Wellcare, and to working together
to drive high-quality, affordable care for members."
The transaction is expected to close by year-end, following
customary regulatory approvals. The Company will provide an update
to the combined entity's financial outlook once the transaction
closes.
Ernst & Young acted as financial advisor and Russ August & Kabat LLP acted as legal
advisor to Astrana in the transaction. Guggenheim Securities, LLC
acted as the financial advisor and Bass, Berry & Sims PLC acted
as legal advisor to Centene.
Additional details regarding Astrana's acquisition of CHS will
be discussed during its August 7
quarterly earnings presentation at 2:30 pm
PST / 5:30pm EST. For call and
webcast details please visit:
https://ir.astranahealth.com/news-events/ir-calendar/detail/20240807-second-quarter-2024-financial-results-conference-call.
About Astrana Health, Inc.
Astrana is a leading
provider-centric, technology-powered healthcare company enabling
providers to deliver accessible, high-quality, and high-value care
to all. Leveraging its proprietary end-to-end technology solutions,
Astrana operates an integrated healthcare delivery platform that
enables providers to successfully participate in value-based care
arrangements, thus empowering them to deliver high quality care to
patients in a cost-effective manner.
Headquartered in Alhambra,
California, Astrana serves over 10,000 providers and
1.0 million Americans in value-based care arrangements. Its
subsidiaries and affiliates include management services
organizations (MSOs), affiliated independent practice associations
(IPAs), accountable care organizations (ACOs), and care delivery
entities across primary, multi-specialty, and ancillary care. For
more information, please visit www.astranahealth.com.
About Collaborative Health Systems
Collaborative
Health Systems (CHS) is a management services organization that
partners with independent primary care physicians as they move to
value-based models. Its core belief is that primary care physicians
are in the best position to influence the quality and cost of
healthcare. CHS provides comprehensive support for its physician
partners by providing management services, risk contracting, and
population health capabilities, including actionable data and other
tools, to deliver care coordination and closure of gaps in care.
CHS provides additional services to secure and deliver favorable
value-based contracts with commercial and other health plans. CHS
currently manages three Direct Contracting entities, seven Medicare
Shared Savings Program Accountable Care Organizations, a Care
Transformation Organization, and three Independent Practice
Associations. CHS is a Centene Corporation company (NYSE: CNC),
focused on transforming the health of the communities it
serves.
Forward Looking Statements
This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, such as
statements about the Company's ability to successfully complete and
realize the intended benefits of the acquisition of CHS, including
satisfying all conditions to the closing of the acquisition,
integrate the operations of CHS, and expand its operations. The
foregoing number of providers and beneficiaries are estimated as of
July 2024. Forward-looking statements
reflect current views with respect to future events and financial
performance and therefore cannot be guaranteed. Such statements are
based on the current expectations and certain assumptions of the
Company's management, and some or all of such expectations and
assumptions may not materialize or may vary significantly from
actual results. Actual results may also vary materially from
forward-looking statements due to risks, uncertainties and other
factors, known and unknown, including the risk factors described
from time to time in the Company's reports to the Securities and
Exchange Commission ("SEC"), including without limitation the risk
factors discussed in the Company's Annual Report on Form 10-K for
the year ended December 31, 2023 and
any subsequent quarterly reports on Form 10-Q.
FOR MORE INFORMATION, PLEASE CONTACT:
Astrana Investor Relations
Asher Dewhurst
(626) 943-6491
investors@astranahealth.com
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SOURCE Astrana Health, Inc.