Oak Street Health’s losses grew in 2022 to almost $510 million as the value-based primary care company, which is pending an acquisition by CVS Health, continued to aggressively pursue growth, reports Health Care Dive.
In comparison, Oak Street, which operates a network of clinics for seniors on Medicare, reported a loss of $415 million in 2021.
The company opened 40 new centers over 2022 and ended the year with 169 facilities in 21 states, serving some 224,000 patients.
Oak Street, which was founded in 2012 and went public in 2020, has proven that its model is scalable, CVS said. The company plans to have over 300 centers by 2026, each of which can contribute $7 million in adjusted earnings at maturity, according to a release on the deal.
However, Oak Street still operates at a loss and the clinic operator isn’t expected to reach profitability until 2025 at the earliest. Read more.
