CVS exploring acquisition of Oak Street Health

CVS Health is in talks with Oak Street Health, which runs primary care centers for Medicare recipients, about a possible acquisition, Bloomberg reported Jan. 9. 

According to people familiar with the matter, a deal could be reached within weeks that would value Oak Street at more than $10 billion, including debt.

But talks between the companies are ongoing and could end without an agreement, according to the sources, who asked not to be identified. 

Oak Street Health runs primary care centers across the U.S. for recipients of Medicare and has private equity firms such as General Atlantic and Newlight Partners among its shareholders. 

CVS Health CEO Karen Lynch had also expressed interest in expanding into the primary care space, and the company was reportedly among the bidders to acquire primary care provider Cano Health before backing out.

CVS also entered into a definitive agreement Sept. 5 to acquire Signify Health, a home health company, for about $8 billion.

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