CVS Health announced the successful completion of its $10.6-billion all-cash acquisition of Chicago-based Oak Street Health on Tuesday. The deal, which was first revealed in February, is expected to expand CVS Health’s value-based primary care platform and improve patient outcomes while reducing costs – particularly for those in underserved communities.
Karen S. Lynch, President and CEO of CVS Health commented that “Combining Oak Street Health’s platform with CVS Heath’s unmatched reach will create the premier value based primary care solution.” To finance the transaction, a term loan agreement was entered into on May 1 for $5 billion as well as existing cash and available resources from within CVS Heath itself.
Oak Street health will remain a multi payor provider under their new parent company; they employ approximately 600 primary care providers across 169 medical centers located throughout 21 states nationwide .
