By Harry S. Jacob, MD

President, Primary PartnerCare Physicians, PLLC

Date:  February 28, 2024

In May 2023, CVS Health announced it had closed on its acquisition of Oak Street Health, picking up about 169 medical centers in 21 states. Since that time, Oak Street Health centers have opened in Long Island (Hempstead and Freeport) in addition to the multitude of centers in the 5 boroughs of New York City.

CVS announced that the acquisition will “… broaden CVS Health’s value-based primary care platform and significantly benefit patients’ long-term health by improving outcomes and reducing costs – particularly for those in underserved communities.” This is a lofty goal for a publicly traded pharmacy company venturing full steam ahead into the medical arena.

The acquisition was reported to escalate interest in value-based physician companies by Wall Street investors who took notice of the all-cash price of $39/share and a valuation of $10.6 BILLION for a Medicare risk-focused enterprise.

“Combining Oak Street Health’s platform with CVS Health’s unmatched reach [10,000 drugstore locations across the country] will create the premier value-based primary care solution,” said CVS Health CEO Karen Lynch in the announcement. “Enhancing our value-based offerings is core to our strategy as we continue to redefine how people access and experience care that is more affordable, convenient and connected.”

Physicians are encouraged to learn more and follow the rapid changes occurring in our industry.