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May 2, 2023

CVS Health completes acquisition of Oak Street Health

HBJ PHOTO | STEVE LASCHEVER Karen Lynch is the CEO of CVS Health.
By Andrew Larson

CVS Health Corp., the parent company of Hartford-based health insurer Aetna, has completed its acquisition of Oak Street Health, the company announced Tuesday.

CVS Health acquired the national primary care physician group for about $10.6 billion, in an all-cash transaction for $39 per share. The parties entered into the agreement on Feb. 8.

Woonsocket, Rhode Island-based CVS Health said the acquisition will broaden its primary care business and benefit patients by improving health outcomes and reducing costs, particularly in underserved communities.

CVS Health financed the transaction with a $5 billion loan, secured Monday, and existing cash and other resources, according to the announcement.

Chicago-based Oak Street Health employs approximately 600 primary care providers and has 169 medical centers across 21 states. It does not currently have any Connecticut locations.

Oak Street Health will continue to operate as a multi-payer primary care provider as part of CVS Health.

CVS Health has grown significantly in recent years, acquiring Aetna for nearly $70 billion in 2018. It closed on an $8 billion acquisition of Signify Health, a home healthcare services company with a major presence in Norwalk, in March.

CVS Health is led by CEO Karen Lynch, who was formerly president of Aetna.

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