Prospect Medical Holdings, Culver City, Calif., said it is negotiating to purchase Alta Healthcare System, Los Angeles, an investor-owned company with four hospitals in Southern California. Prospect said no definitive agreement has been reached, and it has not finalized its financing for the transaction. If those steps are completed, the deal also would require regulatory approvals and meeting other closing conditions.
Prospect owns independent physician associations that manage the medical care of about 250,000 HMO members in Southern California. The publicly traded company recently said in a securities filing that it completed a $48 million acquisition of ProMed Health Services Co., which includes a healthcare administration subsidiary and two affiliated IPAs. -- by Vince Galloro