PROVIDENCE – CVS Health Corp. announced Tuesday it has completed its $10.6 billion acquisition of care company Oak Street Health.
CVS on Feb. 8 said it would pay $39 per share in cash for each share of Oak Street. CVS financed the transaction with the borrowing of $5 billion from a term loan agreement entered into on May 1 and existing cash and available resources.
CVS said it will discuss the acquisition during Wednesday’s first quarter conference call.
Oak Street Health is a Medicare-based primary care provider with 169 centers across the country that provide care for more than 159,000 patients. The company has four locations in Rhode Island – two in Providence, one in Warwick and one in Woonsocket.
Oak Street Health will continue to operate as a multipayer primary care provider as part of CVS Health. It was announced in February Mike Pykosz will continue to lead Oak Street Health when the transaction is finalized.
“This agreement with CVS Health will accelerate our ability to deliver on our mission and continue improving health outcomes, lowering medical costs and providing a better patient experience while offering significant value to our shareholders,” Pykosz said in February. “Together with CVS Health, we will have access to greater resources and capabilities to expand the reach of our platform, provide more opportunities for our teammates and, most importantly, make a meaningful difference in the lives of the patients we serve.”
CVS Health Corp. CEO and President Karen S. Lynch in February said when the acquisition was announced that “combining Oak Street Health’s platform with CVS Health’s unmatched reach will create the premier value-based primary care solution. Enhancing our value-based offerings is core to our strategy as we continue to redefine how people access and experience care that is more affordable, convenient and connected.”
Oak Street runs care centers mostly for lower-to-middle income people with Medicare Advantage plans. Those are privately run versions of the federal government’s program for people aged 65 and older.
CVS has been expanding its health care footprint since acquiring health insurance company Aetna in 2018 for $69 billion.
On March 30, CVS completed its $8 billion acquisition of home-health provider Signify Health. Under the agreement CVS will pay $30.50 in cash per each outstanding Signify share, representing a total transaction value of approximately $8 billion.
Signify Health is a leading technology and services company, focused on provider enablement and bringing clinicians into the home to identify chronic conditions, close gaps in care, and address social determinants of health. Signify has a network of more than 10,000 clinicians in all 50 states who spend an average of 2.5 times longer with a member during home visits than an average visit with a primary care provider.
