The Company’s consolidated financial statements include its subsidiaries and consolidated VIEs. A VIE is defined as a legal entity whose equity owners do not have sufficient equity at risk, or, as a group, the holders of the equity investment at risk lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and the obligation to absorb expected losses or the right to receive benefits from the entity that could potentially be significant to the VIE.

Some states have laws that prohibit business entities with non-physician owners—such as Astrana and its subsidiaries—from practicing medicine, employing physicians to practice medicine, or exercising control over medical decisions by physicians. These laws are generally referred to as corporate practice of medicine laws. States that have corporate practice of medicine laws permit only physicians to practice medicine, exercise control over medical decisions, or engage in certain arrangements, such as fee-splitting, with physicians.

Due to these laws, the Company operates by maintaining long-term MSAs with its affiliated IPAs and medical groups, each of which is owned and operated by physicians only, and employs or contracts with additional physicians to provide medical services. AHM is a wholly owned subsidiary of the Company and has entered into MSAs with several affiliated IPAs, including APC. APC arranges for the delivery of healthcare services by contracting with physicians or professional medical corporations for primary care and specialty care services. The physicians in the IPA are exclusively in control of, and responsible for, all aspects of the practice of medicine for enrolled patients. In accordance with relevant accounting guidance, APC has been determined to be a VIE of AHM, as AHM is its primary beneficiary with the ability, through majority representation on the APC Joint Planning Board and otherwise, to direct the activities (excluding clinical decisions) that most significantly affect APC’s economic performance. Therefore, APC and its wholly owned subsidiaries and VIEs are consolidated in the accompanying financial statements.

Certain state laws prohibit a professional corporation that has more than one shareholder from being a shareholder in another professional corporation. As a result, the Company cannot directly own shares in other professional corporations. However, an exception to this regulation permits a professional corporation that has only one shareholder to own shares in another professional corporation. In reliance on this exception, the Company designated certain key personnel as the nominee shareholder of professional corporations which hold controlling and non-controlling ownership interests in several medical corporations. Via a Physician Shareholder Agreement with the nominee shareholder. the Company has the ability to designate another person to be the equity holder of the professional corporation. In addition, these entities are managed by the Company’s wholly owned MSOs via MSA. In accordance with relevant accounting guidance, the professional corporations, and their consolidated medical corporations, are consolidated by the Company in the accompanying financial statements.

Astrana Medical and Astrana Care Partners Medical were formed as designated shareholder professional corporations in May 2019 and July 2021, respectively. The Company’s Vice Chairman is the sole shareholder of Astrana Medical and Astrana Care Partners Medical. Via a Physician Shareholder Agreement, Astrana makes all the decisions on behalf of Astrana Medical and Astrana Care Partners Medical. Astrana has the obligation to absorb losses of, or the right to receive benefits from, Astrana Medical and Astrana Care Partners Medical. Therefore, Astrana Medical and Astrana Care Partners Medical are controlled by and consolidated by Astrana as the primary beneficiary of the VIEs.

On January 1, 2024, the Company reacquired a 25% equity interest of Eleanor Leung M.D. As a result, Astrana Care Partners Medical now owns 100% of Eleanor Leung M.D.


	December 31,
	2024		2023
Assets

Current assets
Cash and cash equivalents	$	158,922	$	184,078
Investment in marketable securities		2,259		—
Receivables, net		83,977		21,120
Receivables, net – related party		48,251		58,707
Income taxes receivable		—		1,600
Other receivables		15,303		454
Prepaid expenses and other current assets		10,161		9,991

Total current assets		318,873		275,950

Non-current assets
Property and equipment, net		5,875		5,306
Intangible assets, net		87,840		60,906
Goodwill		243,283		140,157
Income taxes receivable, non-current		15,943		15,943
Investments in other entities – equity method		15,442		12,114
Investment in a privately held entity		405		405
Investment in affiliates*		224,894		273,182
Restricted cash		40		40
Operating lease right-of-use assets		21,585		28,796
Other assets		3,019		1,149

Total non-current assets		618,326		537,998

Total assets	$	937,199	$	813,948

Current liabilities
Accounts payable and accrued expenses	$	43,800	$	32,707
Fiduciary accounts payable		8,223		7,737
Medical liabilities		105,486		55,157
Dividend payable		638		638
Income taxes payable		11,041		—
Finance lease liabilities		520		646
Operating lease liabilities		3,487		3,305
Other liabilities		1,351		8,542
Amount due to affiliates*		48,142		107,340

Total current liabilities		222,688		216,072

Non-current liabilities
Deferred tax liability		11,237		7,284
Finance lease liabilities, net of current portion		520		1,033
Operating lease liabilities, net of current portion		21,012		28,675
Other long-term liabilities		619		230

Total non-current liabilities		33,388		37,222

Total liabilities	$	256,076	$	253,294