Pharmacy retailers are looking to grow beyond filling prescriptions and selling over-the-counter medicine. Over the last few months, two of the nation’s largest pharmacy chains have made advances to expand their primary care offerings.
VillageMD, which Walgreens has a majority stake in, announced an $8.9 billion acquisition of Summit Health-CityMD in September. Now, CVS Health is getting its own primary care chain. It announced on Wednesday plans to acquire Oak Street Health in a $10.6 billion deal.
Chicago-based Oak Street Health was founded in 2012 and provides affordable primary care services for older adults. According to the company, over 50 percent of its patients live in underserved communities or have housing or food insecurity. When it initially launched, Oak Street Health differentiated itself from other care networks by using its tech platform to find the most appropriate and affordable care for its patients.
“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,” Mike Pykosz, CEO of Oak Street Health, said in a statement. “Together with CVS Health, we will have access to greater resources and capabilities to expand the reach of our platform.”
There are currently 169 Oak Street Health medical centers, but by 2026 the company expects to grow to 300 centers across the country. To continue building its tech platform, Oak Street Health currently has several opening roles listed on Built In across departments.
CVS Health and Oak Street Health expect the acquisition to close sometime this year.
