Oak Street Deal Could Be Boon for CVS Health — If Firm Can Pull It Off
February
10
Confirming a tie-up that had been rumored for months, CVS Health Corp. on Feb. 8 revealed that it struck a $10.6 billion deal to buy Oak Street Health, which owns primary care centers catering to Medicare-eligible patients. Executives of the two firms say the benefits of the proposed transaction abound for both CVS Health and Oak Street, but industry observers say the acquiring firm still faces a bevy of risks as it seeks to incorporate multiple new care delivery assets.
During CVS Health’s conference call to discuss fourth-quarter and full-year 2022 financial results, CEO Karen Lynch and Mike Pykosz, Oak Street’s president, discussed the merits of the deal at length.
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