top of page

$10B for a primary care provider 🤔



CVS Health, one of the largest pharmacy and healthcare companies in the United States, recently announced its plans to acquire Oak Street Health, a rapidly growing primary care provider for $10B. The acquisition would significantly shift CVS Health's business strategy and position the company as a significant player in the primary care market.


Oak Street Health is a network of primary care clinics that serve older adults on Medicare. Oak Street has more than 160 healthcare centers across 21 states after going public in August 2020 at $21 a share and was worth more than $15 billion at its 2021 peak.

My thoughts: CVS failed to purchase One Medical, another footprint to help CVS expand to gain a large patient base. Oak Street Health's expertise in serving older adults on Medicare would be an asset to CVS Health, which has been working on expanding its offerings for this demographic.


Pharmacy business growth and Medicare Advantage

The company already offers a Medicare Part D prescription drug plan, and the acquisition would allow it to provide additional services to Medicare beneficiaries to improve their pharmacy revenue.


Of course, this potential expansion allows CVS to increase its offering tailored for Medicare Advantage patients.





Comments


RECENT POSTS

FEATURED POSTS

FOLLOW US

  • Grey Facebook Icon
  • Grey Twitter Icon
  • Grey Instagram Icon
bottom of page