Astrana Health, Inc., together with its subsidiaries and affiliated entities, announced on July 25 that the company entered into a definitive agreement to acquire Collaborative Health Systems (CHS), a Centene Corporation company.
CHS is a management services organization (MSO) that partners with independent primary care physicians as they move to value-based models. CHS serves more than 129,000 beneficiaries across 17 states.
Astrana Health is a MSO comprised of healthcare professionals and more than 600 employees. Astrana provides comprehensive administrative support and various auxiliary services to provide the highest quality of care to patients.
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.
The transaction is expected to close by the end of 2024, following customary regulatory approvals. Astrana Health 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. Guggenheim Securities, LLC acted as the financial advisor and Bass, Berry & Sims PLC acted as legal advisor to Centene. Financial terms of the deal were not disclosed.
According to data captured in the LevinPro HC database, this acquisition marks the eighth MSO transaction of 2024. There were six MSO deals announced during 2023, and seven announced during 2022.
