CVS pushes further into health care delivery, acquiring primary care company for $10.6B

WOONSOCKET, R.I. – CVS Health will acquire Oak Street Health, a leading multi-payer, value-based primary care company focused on older adults, in an all-cash transaction at $39 per share, representing an enterprise value of approximately $10.6 billion. 

“Combining Oak Street Health’s platform with CVS Health’s unmatched reach will create the premier value-based primary care solution,” said CVS Health President and CEO Karen S. Lynch. “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.” 

Oak Street Health employs approximately 600 primary care providers and has 169 medical centers across 21 states. The company differentiates itself with its technology solution, Canopy, which is fully integrated with its operations and is used when determining the appropriate type and level of care for each patient. 

That care will be enhanced by CVS Health’s community, home and digital offerings, the companies say. 

“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,” said Oak Street Health CEO Mike Pykosz. “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.” 

Following the close of the transaction, Pykosz will continue to lead Oak Street Health, which will become part of CVS Health’s recently formed Health Care Delivery organization. Oak Street Health will continue to serve its extensive network of health plan partners and patients – consistent with CVS Health’s payer-agnostic approach to delivering leading solutions.