CVS Health Corp. is exploring an acquisition of Oak Street Health Inc., a company that runs primary care centers for Medicare recipients, according to reports. Talks between the companies are reportedly ongoing and could end without an agreement, according to sources. If a deal is reached, it could value Oak Street at more than $10 billion to be purchased.
This comes on the heels of CVS’s continued expansion into the health care industry. In 2022, the drug chain acquired Signify Health Inc., a deal that should close in the first half of 2023. CVS also held talks last year to buy health-care provider Cano Health Inc., and in 2018 it purchased the insurer Aetna.
The company has stated it wants to make health care more convenient and affordable for consumers and has plans to partner with doctors or even potentially acquire primary care practices.
Oak Street, which went public in 2020, aims to reinvent care for Medicare patients with low incomes and chronic health problems. Oak Street has 169 centers across the US which provide care for almost 160,000 patients according to the company.