October 09, 2025
What You Need to Know: Astrana Health’s acquisition of Prospect Health became effective July 1, 2025, transferring provider contracts and operations to Astrana while keeping payment and reimbursement terms unchanged.
Astrana Health’s acquisition of Prospect Health became effective on July 1, 2025, transferring substantially all assets of Prospect Health Plan and Prospect Medical Group (and its subsidiaries) — including operations, provider networks and one acute care hospital. As part of the transaction, provider contracts previously held by Prospect were assigned to Metropolitan IPA, doing business as Prospect Medical Group (or one of its subsidiaries).
Earlier in the year, in January 2025, Prospect Medical Holdings – the former parent company – filed for Chapter 11 bankruptcy protection. This separate filing has caused some confusion for physicians about whether the bankruptcy would affect claims or payments.
According to Astrana’s provider communications, Prospect Medical Group, its related IPAs, Gateway Medical Center and Foothill Regional Medical Center were not part of the bankruptcy filing and payments owed to physicians remain unaffected. All contractual relationships, reimbursement rates and compensation structures continue unchanged under Astrana. The company has indicated that contract consolidation may be explored in the future, with advance notice provided before any implementation.
Processes for claim submissions, authorizations and provider communications remain the same. Practices should continue using the existing systems such as Aerial, Cozeva, and Office Ally, and use their current Network Manager and Prospect leadership contacts.
Some checks issued by Prospect’s prior owners before the acquisition were impacted by the bankruptcy and could not be deposited. Astrana has confirmed that this issue has been resolved and that all checks issued on or after July 1, 2024 (i.e., over the 12 months prior to the acquisition) will be honored.
To help address questions, Astrana has published several provider bulletins with additional details:
Physicians with questions can contact Astrana Provider Relations at ProviderInfo@prospectmedical.com or (800) 708-3230 (select prompt 1, then 7).
Practices that have any issues getting paid can contact the California Medical Association Center for Economic Services for assistance at (800) 786-4262 or economicservices@cmadocs.org.