CVS Health has completed a $10.6 billion acquisition of primary care provider Oak Street Health, the companies announced Tuesday.
The healthcare group acquired Chicago-based Oak Street Health in an all-cash transaction for $39 a share. Oak Street Health will continue to participate in the provider network for many insurers, not just CVS Health subsidiary Aetna, the companies said in a press release.
The transaction adds a coveted primary care asset to CVS Health’s portfolio. A CVS Health spokesperson said the company will provide more details when it reports first-quarter earnings on Wednesday.
Oak Street Health operates more than 170 facilities in 21 states and plans to expand to 300 facilities by 2026, CVS Health Chief Financial Officer Shawn Guertin said on a call with investors as the deal struck. announced in February. Oak Street Health shareholders approved the sale Friday, according to Securities and Exchange Commission filings.
Antitrust authorities reviewed the proposed deal, but the Justice Department and the Federal Trade Commission allowed the waiting period to end without taking action to impede the transaction.
The acquisition builds on CVS Health’s value-based care strategy, which the company has been implementing through transactions and partnerships.
In March, CVS Health completed an $8 billion purchase of Dallas-based home health and physician-assistance technology, Signify Health. The company signed partnerships in January with health systems including the Rush University System for Health and the Chicago-based Rockville Center, the New York-based Catholic Health Authority. for the Medicare Responsible Care Organizations Realizing Equity, Access and Community Health program, or ACO REACH.
