Established in 1996, Prospect Medical Holdings, Inc. has grown into a significant provider of coordinated regional healthcare services in Southern California, Connecticut, New Jersey, Pennsylvania and Rhode Island.
Combined, our affiliated medical groups, including the medical groups that we manage, are a significant provider of managed care services. Each of our medical groups is a network of independent physicians that contracts with HMOs. In diverse areas, HMOs often find it more efficient to outsource the responsibility of providing physician services through medical groups. This collaboration between HMOs and medical groups is a well-established model in the markets we serve and is designed to motivate physicians to practice preventive medicine and reduce unnecessary procedures.
Affiliation with a medical group allows independent physicians to build their practices and HMOs to more efficiently contract for physician services and outsource certain medical management and administrative functions associated with those activities.
The company started when Prospect Medical Group, Inc.—one of our medical groups—began growing through a series of acquisitions and affiliations beginning in 1995. This included our expansion from California-based Orange and San Bernardino counties with the acquisition of ProMed Health Care Administrators and its affiliated medical groups in June 2007. This transaction increased the number of HMO enrollees to 80,000. Today, we arrange for the care of more than 500,000 members in our 25 owned or managed networks of more than 11,000 doctors and specialists in six states.
In addition to our medical groups, we also own 17 acute and behavioral hospitals. Our hospitals are located in diverse areas within Southern California, Connecticut, New Jersey, Pennsylvania and Rhode Island, and maintain significant market positions in the areas they serve. All of our facilities provide a comprehensive range of services tailored to their specific communities, including partnerships with other area hospitals, physicians and health plans.
Our hospital operations were established in August 2007 with the acquisition of Alta Hospitals System, LLC, a system of four community-based hospitals in Southern California with a combined 339 licensed beds. The acquisition of Alta transformed our company from a business exclusively providing medical group management services to what it is today—a provider of coordinated regional healthcare services. We believe our proven Coordinated-Regional-Care model offers competitive advantages, including a data-driven and cost-efficient platform that enables us to provide quality care in today’s challenging environment.
The number of hospitals in the Southern California market expanded to five with the acquisition of Southern California Hospital at Culver City (formerly known as Brotman Medical Center), a 420-bed general acute care hospital. Southern California Hospital at Culver City later consolidated with two sister facilities to form Southern California Hospitals System.
In May 2014, we acquired a Tustin hospital. Today, our California acute care hospitals include Orange County-based Foothill Regional Medical Center and Los Angeles-based Southern California Hospitals at Culver and Hollywood, and Los Angeles Community Hospital and Norwalk Community Hospital. Our two California behavioral health hospitals are located in Bellflower and Van Nuys.
In June 2014, Prospect entered into a unique and innovative partnership in Rhode Island to help ensure the future of CharterCARE Health Partners’ two hospitals—Roger Williams Medical Center and Our Lady of Fatima Hospital. Through a joint venture agreement, Prospect became the majority owner of CharterCARE but shares governance of the hospitals equally with CharterCARE Community Board.
Prospect further expanded its presence in the Northeast in March 2016 when it completed its acquisition of East Orange General Hospital in East Orange, NJ. EOGH is a 212-bed general acute care hospital that has served its community for more than a century.
In July 2016, Prospect acquired Crozer-Keystone Health System, based in Springfield, Pa., the largest employer and healthcare provider in Delaware County, which is located southwest of Philadelphia. The Crozer-Keystone System consists of four general acute care hospitals and also operates several outpatient facilities and a comprehensive physician network of primary care and specialty practices.
In October 2016, Prospect Medical completed its acquisition of three general acute care hospitals in Connecticut. The company acquired Eastern Connecticut Health Network (ECHN), a two-hospital system serving 19 towns in the eastern part of the state. Offering a full spectrum of wellness, prevention, acute care, rehabilitation and restorative care to the community, ECHN consists of 249-bed Manchester Memorial Hospital in Manchester, 102-bed Rockville General Hospital in Vernon, several outpatient facilities and a comprehensive physician network of primary care and specialty practices. Also in October, Prospect acquired Waterbury Hospital a 357-bed hospital which serves Waterbury and 11 surrounding communities in Western Connecticut. Waterbury Hospital also forms the cornerstone of the Greater Waterbury Health Network, a family of healthcare-related services in the community.
Today, the company continues to focus on the development of our core operations and markets, as well as on further development into new services and new areas of the country. Our goal is to best serve the healthcare needs of both the communities in which we currently operate and the communities in other states where we seek to grow.