US-based technology-powered healthcare company Astrana Health has signed a definitive agreement to acquire healthcare enterprise Centene’s Collaborative Health Systems (CHS).
The acquisition is set to enhance the payer-agnostic care delivery capabilities of both Astrana and CHS, serving members across various lines of business and empowering CHS's providers in community care delivery.
The deal aims to expand Astrana's provider footprint and enhance its Care Enablement platform.
Financial terms of the deal, which is expected to close by the end of the year, have not been disclosed.
The deal is currently subject to the receipt of customary regulatory approvals.
Astrana Health said that it will provide an update on the financial outlook of the combined entity once the transaction is complete.
CHS collaborates with independent primary care physicians to transition to value-based care models. It is a management services organisation that operates across 17 US states.
The organisation has established a significant provider network in key US markets, such as Maryland, Connecticut, Georgia, New Mexico, and Virginia.
It also features a scaled ecosystem of over 350 primary care physicians in Texas, complementing Astrana's growing presence in the state.
Astrana plans to integrate its Care Enablement platform with CHS's operations to improve patient outcomes.
This platform includes a suite of care management tools and technology such as AI-driven population health analytics and disease management platforms.
Ernst & Young and Russ August & Kabat provided financial and legal advisory services, respectively, to Astrana for this transaction.
Centene received financial advice from Guggenheim Securities and legal counsel from Bass, Berry & Sims.
Astrana Health president and CEO Brandon Sim said: “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. 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 organising and empowering providers while elevating the healthcare experience for patients throughout the country.”
