CVS Health Completes Oak Street Health Acquisition

CVS Health has completed its acquisition of Oak Street Health, as announced by the company this week.

In February, an all-cash transaction valued at approximately $10.6 billion was announced for Oak Street Health, a primary care company focused on older adults. The company utilizes a scalable care model and technology platform.

CVS Health utilized a $5 billion term loan agreement and available resources to finance the transaction. The company has expressed its dedication to preserving its present credit ratings.

Oak Street Health will remain a primary care provider for multiple payers while being part of CVS Health.

Read more: CVS Expects To Close Oak Street Health After Passing Antitrust Hurdles

The organizations said the acquisition would benefit patients’ long-term health by reducing care costs and improving outcomes, particularly for those in underserved communities. More than 50% of Oak Street Health’s patients have a housing, food or isolation risk factor, they said.

Oak Street Health employs about 600 primary care providers and has 169 medical centers across 21 states. Its signature technology solution is Canopy, which is integrated with the company’s operations and utilized when determining the appropriate type and level of care for each patient.