CVS Health plans to acquire Oak Street Health in a $10.6 billion deal, which will likely close later this year. When the deal closes, CVS will have strengthened its position as one of the largest healthcare organizations in the country and become another area where it competes with Optum, which it already beats on revenue, reports Becker’s.
Oak Street will bring CVS Health 600 employed primary care providers and 169 medical centers in 21 states. Oak Street also has a virtual care component and technology solution, Canopy, fully integrated with operations. The organization aims to keep expanding its physical footprint, aiming to have 300 centers by 2026 contributing $7 million each to Oak Street’s adjusted EBITDA at maturity. Read more.
