CVS acquires Oak Street primary care for $10.6 billion

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CVS acquires Oak Street primary care for $10.6 billion
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The drugstore chain has been expanding into health care.

- CVS Health is plunging deeper into primary care services, buying primary care provider Oak Street Health for approximately $10.6 billion.

With its latest acquisition, CVS Health Corp. aims to capitalize on the federal government’s interest in cutting costs and improving the health of people in its Medicare program. “Solving that problem creates a massive, massive market opportunity for Oak Street Health,” Pykosz said in January at an annual conference hosted by JPMorgan.

CVS Health Corp., based in Woonsocket, Rhode Island, has been expanding the amount of care it provides through its drugstores, and company leaders have been talking for well over a year about adding more primary care as rival health care giants UnitedHealth Group and Walgreens have done. Walgreens and VillageMD are opening next to drugstores primary care centers that also target Medicare Advantage patients. Another insurer, Cigna, also invests in VillageMD.

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