CVS Deepens Healthcare Roots With $10.6B Oak Street Deal

CVS says it will acquire primary care provider Oak Street Health for $10.6 billion.

The pharmacy giant announced the purchase Wednesday (Feb. 8) morning, marking the latest step in CVS’ campaign to expand its primary care offerings. It’s also happening as a number of major retailers are investing in their own healthcare projects.

“Bringing CVS Health and Oak Street Health together can significantly benefit patients’ long-term health by reducing care costs and improving outcomes — particularly for those in underserved communities,” the company said in a news release.

The release notes that Oak Street’s centers are based where “healthcare services are needed most,” with more than half its patients facing a “housing, food or isolation risk factor.”

Based in Illinois, Oak Street Health employs about 600 primary care providers and has 169 medical centers in 21 states. The release notes that the company aims to have more than 300 centers by 2026.

The $10.6 billion price tag is slightly higher than the $10 billion figure mentioned when reports of the proposed deal first emerged last month.

This purchase follows CVS’s acquisition last year of Signify Health for $8 billion. The Dallas-based company has a network of 10,000 medical professionals around the country, and uses analytics and technology to provide in-home care to employers, physicians groups, health plans, and health systems.

Last year also saw the introduction of CVS Health Virtual Primary Care, a virtual care solution available via a digital platform.

The program “connects CVS Health’s services, clinical expertise, and data for a more coordinated and consumer-centric healthcare experience,” the company said in May 2022, noting that the platform “enables consumers to choose care when and where they want.”

CVS is one of several companies engaged in — as PYMNTS put it — big retail’s push into the world of healthcare.

Earlier this week, the grocery giant Albertsons debuted Sincerely Health, a digital health and wellness platform that can be accessed via the apps and websites of 16 of the brand’s supermarkets.

Last month, Kroger — which is in the midst of a planned merger with Albertsons last year — announced that its Kroger Health division had joined forces with pharmaceutical organizations to set up a clinical trial site network, carrying out its own studies.

The same week brought reports that Dollar General was piloting a mobile health program for customers in rural America, providing services that include yearly physical, vaccinations, lab testing and urgent care.