Astrana Health Enters Definitive Agreement to Acquire Collaborative Health Systems
Astrana Health (NASDAQ: ASTH) has announced a definitive agreement to acquire Collaborative Health Systems (CHS), a management services organization serving over 129,000 beneficiaries across 17 states and a company of Centene (NYSE:CNC). This acquisition aims to expand Astrana's payer-agnostic care delivery capabilities and empower CHS' providers. The deal combines Astrana's technology platform and care model with CHS's provider base and payer partnerships, potentially accelerating Astrana's goal of organizing providers and enhancing patient healthcare experiences.
CHS has a complementary provider footprint in key markets including Connecticut, Georgia, Maryland, New Mexico, Virginia, and Texas. Astrana plans to leverage its Care Enablement platform to improve patient outcomes. The transaction is expected to close by year-end, subject to regulatory approvals. Financial details will be updated post-closure, with more information to be discussed during Astrana's August 7 quarterly earnings presentation.
Astrana Health (NASDAQ: ASTH) ha annunciato un accordo definitivo per acquisire Collaborative Health Systems (CHS), un'organizzazione di servizi di gestione che serve oltre 129.000 beneficiari in 17 stati e una società di Centene (NYSE:CNC). Questa acquisizione mira a espandere le capacità di erogazione di assistenza indipendentemente dal pagatore di Astrana e a potenziare i fornitori di CHS. L'accordo combina la piattaforma tecnologica e il modello di assistenza di Astrana con la base di fornitori e le partnership con i pagatori di CHS, potenzialmente accelerando l'obiettivo di Astrana di organizzare i fornitori e migliorare l'esperienza sanitaria dei pazienti.
CHS ha un footprint di fornitori complementari in mercati chiave tra cui Connecticut, Georgia, Maryland, New Mexico, Virginia e Texas. Astrana prevede di sfruttare la sua piattaforma di Abilitazione all'Assistenza per migliorare i risultati dei pazienti. La transazione è prevista per chiudere entro la fine dell'anno, soggetta alle approvazioni normative. I dettagli finanziari saranno aggiornati dopo la chiusura, con ulteriori informazioni che saranno discusse durante la presentazione dei risultati trimestrali di Astrana del 7 agosto.
Astrana Health (NASDAQ: ASTH) ha anunciado un acuerdo definitivo para adquirir Collaborative Health Systems (CHS), una organización de servicios de gestión que atiende a más de 129,000 beneficiarios en 17 estados y una empresa de Centene (NYSE:CNC). Esta adquisición tiene como objetivo ampliar las capacidades de atención de Astrana, independientemente del pagador, y empoderar a los proveedores de CHS. El acuerdo combina la plataforma tecnológica y el modelo de atención de Astrana con la base de proveedores y las asociaciones con pagadores de CHS, lo que podría acelerar el objetivo de Astrana de organizar proveedores y mejorar la experiencia de atención de los pacientes.
CHS tiene una presencia complementaria de proveedores en mercados clave que incluyen Connecticut, Georgia, Maryland, Nuevo México, Virginia y Texas. Astrana planea aprovechar su plataforma de Habilitación de Atención para mejorar los resultados de los pacientes. Se espera que la transacción se complete a finales de año, sujeta a las aprobaciones regulatorias. Los detalles financieros se actualizarán después del cierre, con más información que se discutirá durante la presentación de resultados trimestrales de Astrana el 7 de agosto.
Astrana Health (NASDAQ: ASTH)는 Collaborative Health Systems (CHS) 인수에 대한 확정 계약을 발표했습니다. CHS는 17개 주에서 129,000명 이상의 수혜자에게 서비스를 제공하는 관리 서비스 조직이며 Centene (NYSE:CNC)의 자회사입니다. 이번 인수는 Astrana의 무관한 지불자 의료 서비스 확대와 CHS의 제공자들에게 실질적인 지원을 제공하는 것을 목표로 하고 있습니다. 이 거래는 Astrana의 기술 플랫폼과 의료 모델을 CHS의 제공자 기반 및 지불자 파트너십과 결합하여, Astrana가 의료 제공자를 조직하고 환자의 의료 경험을 향상시키려는 목표를 가속화할 수 있습니다.
CHS는 코네티컷, 조지아, 메릴랜드, 뉴멕시코, 버지니아, 텍사스 등 주요 시장에서 보완적인 제공자 발자국을 보유하고 있습니다. Astrana는 환자 결과를 개선하기 위해 Care Enablement 플랫폼을 활용할 계획입니다. 이 거래는 연말까지 마무리될 것으로 예상되며, 규제 승인이 필요합니다. 재정적 세부 사항은 거래 종료 후 업데이트될 예정이며, 8월 7일 Astrana의 분기 실적 발표에서 추가 정보가 논의될 것입니다.
Astrana Health (NASDAQ: ASTH) a annoncé un accord définitif pour acquérir Collaborative Health Systems (CHS), une organisation de services de gestion au service de plus de 129 000 bénéficiaires dans 17 États et une société de Centene (NYSE:CNC). Cette acquisition vise à élargir les capacités de prestation de soins indépendamment du payeur d'Astrana et à donner plus de pouvoir aux fournisseurs de CHS. L'accord combine la plateforme technologique et le modèle de soins d'Astrana avec la base de fournisseurs et les partenariats de payeurs de CHS, ce qui pourrait accélérer l'objectif d'Astrana d'organiser les fournisseurs et d'améliorer l'expérience de soins des patients.
CHS dispose d'une présence complémentaire de fournisseurs sur des marchés clés, notamment le Connecticut, la Géorgie, le Maryland, le Nouveau-Mexique, la Virginie et le Texas. Astrana prévoit d'exploiter sa plateforme d'activation des soins pour améliorer les résultats des patients. La transaction devrait être finalisée d'ici la fin de l'année, sous réserve des approbations réglementaires. Les détails financiers seront mis à jour après la clôture, avec plus d'informations à discuter lors de la présentation des résultats trimestriels d'Astrana le 7 août.
Astrana Health (NASDAQ: ASTH) hat eine definitive Vereinbarung zum Erwerb von Collaborative Health Systems (CHS) bekannt gegeben, einer Managementdienstleistungsorganisation, die über 129.000 Begünstigte in 17 Bundesstaaten bedient und ein Unternehmen von Centene (NYSE:CNC) ist. Diese Übernahme zielt darauf ab, die zahlungsunabhängigen Versorgungsfähigkeiten von Astrana auszubauen und die Anbieter von CHS zu stärken. Der Deal kombiniert Astranas Technologieplattform und Versorgungsmodell mit der Anbieterbasis und den Partnerschaften von CHS, was Astranas Ziel beschleunigen könnte, Anbieter zu organisieren und die Erfahrung der Patienten im Gesundheitswesen zu verbessern.
CHS hat eine ergänzende Anbieterpräsenz in wichtigen Märkten, darunter Connecticut, Georgia, Maryland, New Mexico, Virginia und Texas. Astrana plant, seine Care Enablement-Plattform zu nutzen, um die Patientenergebnisse zu verbessern. Die Transaktion soll bis zum Jahresende abgeschlossen werden, vorbehaltlich der regulatorischen Genehmigungen. Finanzielle Einzelheiten werden nach dem Abschluss aktualisiert, mit weiteren Informationen, die während der Quartalsergebnispräsentation von Astrana am 7. August erörtert werden.
- Acquisition expands Astrana's care delivery capabilities across 17 states
- Adds over 129,000 beneficiaries to Astrana's patient base
- Complements Astrana's existing presence in Texas with 350+ primary care physicians
- Potential for improved patient outcomes through Astrana's Care Enablement platform
- Strengthens partnership with Centene's Medicare business, Wellcare
- Financial terms of the acquisition not disclosed
- Integration challenges may arise from combining two large organizations
- Regulatory approvals still pending, which could delay or affect the deal closure
Insights
This acquisition marks a significant strategic move for Astrana Health, potentially reshaping its market position and operational capabilities. The deal to acquire Collaborative Health Systems (CHS) from Centene is poised to expand Astrana's geographical footprint and enhance its value-based care delivery model.
Key financial implications include:
- Increased market reach: CHS serves over 129,000 beneficiaries across 17 states, which should substantially boost Astrana's patient base and revenue potential.
- Synergies in technology and care models: Astrana's Care Enablement platform could drive operational efficiencies and improve patient outcomes in CHS's network.
- Strategic partnerships: The continued collaboration with Centene's Medicare business, Wellcare, suggests potential for future revenue streams and market expansion.
While specific financial terms weren't disclosed, investors should watch for the updated financial outlook post-closure. The transaction's impact on Astrana's balance sheet, cash flow and profitability will be important metrics to evaluate. Additionally, the successful integration of CHS's operations and realization of synergies will be critical for long-term value creation.
From a market perspective, this acquisition positions Astrana as a more formidable player in the value-based care space, potentially leading to improved negotiating power with payers and increased attractiveness to healthcare providers. However, investors should also consider the execution risks associated with large-scale integrations and the regulatory approvals required for deal closure.
Astrana Health's acquisition of Collaborative Health Systems (CHS) represents a significant development in the evolving landscape of value-based care. This strategic move aligns with the industry-wide shift towards integrated, technology-driven healthcare delivery models.
Key industry implications include:
- Market consolidation: This deal exemplifies the ongoing trend of consolidation in the healthcare management services sector, as companies seek scale and efficiency.
- Technology integration: Astrana's plan to leverage its Care Enablement platform across CHS's network highlights the growing importance of AI and data analytics in improving patient outcomes and operational efficiency.
- Geographic expansion: The acquisition gives Astrana a stronger presence in key markets, particularly in the South and East Coast, potentially altering competitive dynamics in these regions.
- Provider empowerment: The focus on supporting and empowering providers aligns with the industry's move towards more provider-centric models of care delivery.
This acquisition could serve as a catalyst for further consolidation in the sector, as competitors may seek similar deals to remain competitive. It also underscores the importance of technological capabilities in driving value-based care initiatives.
For the broader healthcare ecosystem, this deal may accelerate the adoption of value-based care models and potentially lead to improved patient outcomes and cost efficiencies. However, the success of this strategy will depend on Astrana's ability to effectively integrate CHS's operations and deliver on the promised synergies.
"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
"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
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.
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