Oak Street Health, newly acquired by CVS Health, will expand into 4 new states
The health care provider plans to open value-based primary care centers in Arkansas, Iowa, Kansas and Virginia, marking CVS’ latest move to get further into health care services.
Oak Street Health, a primary care network acquired by CVS Health in May, has announced plans to expand into four additional states, bringing the total to 25.
“One of the most critical ways we advance our mission to rebuild health care as it should be is by bringing our high-quality primary care and unmatched patient experience to more older adults across the country,” CEO Mike Pykosz said. “We look forward to meeting and caring for new deserving patients in Arkansas, Iowa, Kansas and Virginia, as well as the opportunity to create meaningful jobs for those passionate about improving health outcomes for patients and bridging health equity gaps in their communities.”
Oak Street Health delivers personalized, preventive primary care through a model created to meet the needs of older adults. The integrated model incorporates behavioral health care and social determinants support and is accessible through a mix of in-center, in-home and telehealth appointments, as well as a 24/7 patient support line.
Related: CVS pays $10.6B for Oak Street Health primary care centers
The company said it has reduced patient hospital admissions by approximately 51% compared to Medicare benchmarks and has driven a 42% reduction in 30-day readmission rates and a 51% reduction in emergency department visits.
“Oak Street Health is dedicated to making a positive impact in the areas it serves by hiring employees from local neighborhoods and investing resources to support its communities,” according to a company news release. “Now part of CVS Health, Oak Street Health’s continued expansion and center growth helps further CVS Health’s strategy by delivering an industry-leading health-care experience for consumers and patients, as well as providers, through a risk-enabled, multi-payor value-based care delivery platform.”
CVS Health completed its $10.6 billion acquisition of Oak Street Health in February. The acquisition gives CVS access to the Chicago-based company’s value-based primary care network, with more than 160 clinics. Under the deal, Oak Street Health operates as a multi-payer primary care provider as part of CVS Health.
The deal marked CVS’ second multibillion-dollar purchase this year. In March, it completed its $8 billion acquisition of Signify Health, adding more than 10,000 clinicians to its network.