Oak Street Health, Inc. (NYSE: OSH) announces that the New York Stock Exchange has contacted the Company in response to unusual market activity in the Company’s stock, as is customary for the Exchange. According to the company’s policy, it does not comment on unusual market activity.
The Wall Street Journal reported on Monday that CVS Health Corp (NYSE: CVS) is nearing an agreement to buy primary care center operator Oak Street Health Inc. for about $10.5 billion in cash and debt.
According to the newspaper, the companies are discussing a price of around $39 per share. If the deal goes through, it could be announced as soon as this week, according to the report. When contacted by Reuters, Oak Street Health and CVS declined to comment on the report. Last month, Bloomberg News reported that CVS was considering acquiring Oak Street Health.
Oak Street Health operates primary care centers across the United States for Medicare recipients, the United States’ government insurance program for Americans 65 and older, and its shareholders include private equity firms such as General Atlantic and Newlight Partners.
CVS had also expressed interest in expanding into the primary care space, and was reportedly among the bidders for Cano Health before withdrawing.
Combining CVS Health and Oak Street Health can significantly benefit patients’ long-term health by lowering care costs and improving outcomes, especially in underserved communities. Oak Street Health centers are located in areas where health care services are most needed; more than half of Oak Street Health’s patients have a risk factor for housing, food, or isolation.
“By combining Oak Street Health’s platform with CVS Health’s unparalleled reach, we will create the premier value-based primary care solution,” said Karen S. Lynch, President and CEO of CVS Health. “We are committed to improving our value-based offerings as we continue to redefine how people access and experience care that is more affordable, convenient, and connected.”
Oak Street Health employs 600 primary care providers and operates 169 medical centers in 21 states. Canopy, Oak Street Health’s leading technology solution, is fully integrated with Oak Street Health’s operations and used to determine the appropriate type and level of care for each patient. CVS Health’s community, home, and digital offerings will supplement this care.
“This agreement with CVS Health will help us deliver on our mission of improving health outcomes, lowering medical costs, and providing a better patient experience while providing significant value to our shareholders,” said Oak Street Health CEO Mike Pykosz. “Through our partnership with CVS Health, we will have greater access to 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.”
