After announcing earlier last week that it would buy drugstore operator Carbon Health for $100 million, a Bloomberg report stated that CVS Health was exploring a $10 billion acquisition of primary care provider Oak Street Health.
It may be weeks before we know if a deal can be reached, but the news is further indication that the retail health care chain has not lost its appetite for huge acquisitions to further diversify its services. CVS CEO Karen Lynch would not directly comment on the possible Oak Street Health deal but said the company was in the market for a primary care asset.
If it does acquire Oak Street Health, it would enable CVS to expand care offerings to seniors. Oak Street, which went public in 2020, has 169 primary care clinics targeting Medicare-eligible patients (many in underserved communities) in 21 states, with 159,000 at-risk patients receiving care.
In addition, CVS invested $25 million in a Series C funding round for the virtual outpatient mental health practice Array Behavioral Care. Array’s services are in network with most payers — including Aetna, which is part of CVS Health. The company documents all patient visits in its electronic health record and submits claims to health plans. The company also integrates its clinicians into other provider groups.
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