CVS Health is expanding its vertical integration into providing healthcare. Besides the nearly 10,000 community pharmacies, they have specialty pharmacies, mail order pharmacies, Aetna insurance, the PBM Caremark, Silver Scripts Medicare Part D now part of Aetna and a Medicare -C (Advantage) prgms, and in many of their community pharmacies they have MINUTE CLINICS and this acquisition of was < 60 days since acquiring CVS closed $8B deal for health services company Signify Health
Those pts who have their medical care provided by CVS Health are pretty familiar with the restricted networks that entities like CVS force pts to use. It is much like when a fish bites down on a “baited hook” … there is no getting off the hook.
CVS closes $10.6B acquisition of Oak Street Health to expand primary care footprint
CVS Health has sealed the deal on its acquisition of Oak Street Health, picking up about 169 medical centers in 21 states.
The acquisition cleared a major regulatory hurdle back in late March when the Department of Justice and the Federal Trade Commission allowed the antitrust waiting period to run out on without taking action to halt the deal. Sen. Elizabeth Warren, D-Massachusetts, had urged the FTC to take a closer look at the deal and challenge any M&A activity in healthcare that could lead to higher prices, less competition and lower care quality.
The retail pharmacy giant announced the deal on February 8 as an all-cash transaction for $39 per share, representing an enterprise value of approximately $10.6 billion. The company financed the transaction with borrowings of $5.0 billion from a term loan agreement entered into on May 1, 2023 and existing cash and available resources.
Oak Street Health will continue to operate as a multipayer primary care provider as part of CVS Health.
Oak Street CEO Mike Pykosz will continue to lead the Medicare-focused primary care company when the deal closes, CVS said, and the provider would be folded into its newly created healthcare delivery arm.
Closing the Oak Street deal follows closely on the heels of CVS finalizing its $8 billion acquisition of home health and technology company Signify Health.
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