Prospect Medical Holdings sees synergies between hospitals and managed health care. The company owns and manages seven hospitals and about a dozen independent physicians associations (IPAs) in Southern California and Texas. Its hospital segment, which includes the majority owned Brotman Medical Center, has a total of about 1,050 beds and provide acute care and specialty medical services. The firm's medical group segment provides administrative management services to about 7,000 IPA member physicians, which in turn provide health care to 181,000 HMO enrollees for fixed monthly fees paid by the managed care organization to which they belong. Prospect is owned by private equity firm Leonard Green & Partners.
Change in Company Type
Leonard Green & Partners took Prospect Medical private in a deal valued at some $363 million in August 2010. The price represented about a 39% premium over the closing sale price of Prospect's publicly-traded shares.
In addition to hospitals, the company operates a network of 18 specialty and primary care clinics in Southern California and Texas. Prospect's combined Medical Groups represent one of the largest in Southern California and have contracts with most of the major (non-Kaiser) HMOs in the region.
Prospect Medical has grown through the acquisition of both hospitals and independent physicians associations (IPAs) in existing and new markets, notably Texas. Indeed, since entering the hospital market with the acquisition of for-profit Alta Healthcare System in 2007, Prospect now operates seven facilities. In 2012 it acquired San Antonio-based Nix Health Care System from Merit Health Systems. The purchase expanded Prospect's operations and brightened prospects for its future expansion in Texas. Nix's operations in and around San Antonio include Nix Medical Center, Nix Alamo Heights, Nix Specialty Health Center, among other facilities and physician offices.
By pursuing both hospital and IPA acquisitions to strengthen its network of health care providers, Prospect Medical has been able to integrate hospital services with physician care and negotiate richer contracts with its managed care clients. – less
3 salaries reported
$13.83 per hour