CVS Mulls Further Healthcare Expansion With Possible $10B Acquisition Of Oak Street Health

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CVS Health Corp. is considering an offer to buy Oak Street Health, which runs primary care centers for Medicare recipients, in a deal that would value the clinic chain at about $10B, Bloomberg reports, citing unnamed sources close to the negotiations.

Oak Street operates 169 clinics nationwide, providing care for about 159,000 patients, according to Bloomberg, with private equity firms General Atlantic and Newlight Partners owning a large stake of the company, roughly 39%, between them.

Last year, Woonsocket, Rhode Island-based CVS acquired Signify Health for $8B, as part of its drive to offer more direct healthcare services. Signify has a network of more than 10,000 clinicians nationwide.

The Oak Street deal would follow a $100M investment by CVS Health's venture capital platform CVS Health Ventures in Carbon Health, an urgent care provider.

CVS invested in Carbon Health as part of its Series D funding round. The money helped Carbon expand into new markets and invest in new tech. For its part, CVS Health will pilot the Carbon Health operating model inside a number of existing CVS Health locations.

“This pilot will allow us to explore Carbon Health’s potential to advance the retail health experience," CVS Health Ventures Managing Partner Vijay Patel said in a statement.

Carbon Health has about 125 locations in 13 states and offers widespread virtual coverage.

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