CVS is buying value-based primary care provider Oak Street Health for $10.6 billion, the companies announced, in a deal that will push CVS further into the direct delivery of care. The announcement confirmed earlier reporting that a deal was imminent.
The price tag for Oak Street, which serves mostly seniors on Medicare, represents $39 a share, a roughly 50% premium to its closing price on Monday, Healthcare Dive reports.
The companies said they expect the transaction to close this year, subject to closing conditions. However, it will likely face regulatory scrutiny. One antitrust advocacy group is already opposing the deal.
CVS has settled on an acquisition after months of shopping around for a primary care operator as it looks to create a vertically integrated healthcare business including physicians, pharmacy a health plan and more. Read more.
