CVS Health and Oak Street Health have entered into a definitive agreement under which CVS Health will acquire Oak Street Health in an all-cash transaction for $39 per share, representing a business value of approximately 10 $6.6 billion.Oak Street Health is a leading value-oriented, multi-payer primary care company that helps seniors stay healthy and live fuller lives. With an innovative model of care and a technology platform designed to deliver consistently superior results and experiences for patients, Oak Street Health has proven its model is scalable.The combination of CVS Health and Oak Street Health can provide significant benefits to patients’ long-term health by reducing care costs and improving outcomes, especially for those in the community. served. Oak Street Medical Centers are located where healthcare services are needed most; More than 50% of Oak Street Health patients have risk factors related to housing, food, or isolation.
Oak Street Health employs approximately 600 primary care providers and has 169 health centers in 21 states. Oak Street Health differentiates itself with its industry-leading technology solution, Canopy, which is fully integrated into Oak Street Health’s operations and used to determine the right type and level of care for each patient. This care will be enhanced by CVS Health’s digital, home and community services.“Combining Oak Street Health’s platform with CVS Health’s unmatched reach will create the premier value-based primary care solution,”
“Enhancing our value-based offerings is core to our strategy as we continue to redefine how people access and experience care that is more affordable, convenient and connected.”
CVS Health President and CEO Karen S. Lynch.
Following the close of the transaction, Pykosz will continue to lead Oak Street Health, which will be part of CVS Health’s newly created Healthcare Delivery organization. Oak Street Health will continue to serve its extensive patient and health plan partner network, consistent with CVS Health’s independent payer approach to providing industry-leading solutions.“This agreement with CVS Health will accelerate our ability to deliver on our mission and continue improving health outcomes, lowering medical costs, and providing a better patient experience while offering significant value to our shareholders,”
“Together with CVS Health, we will have access to greater resources and capabilities to expand the reach of our platform, provide more opportunities for our teammates and, most importantly, make a meaningful difference in the lives of the patients we serve.”
Oak Street Health CEO Mike Pykosz.
