CVS says Oak Street, Signify Health will turbo charge its value-based care strategy

CVS Health said its acquisitions of Oak Street Health and Signify Health add primary care, home-based care and provider enablement capabilities to its portfolio and will significantly advance its value-based care strategy. 

According to the company's first-quarter earnings call, posted May 3, Signify Health will help CVS identify gaps in care and return patients to care with their payer partners.

CVS closed on the $7.8 billion Signify Health deal in March. Under the partnership, CVS will now have access to more than 10,000 clinicians. 

The retail giant also closed its $10.6 billion acquisition of Medicare-focused Oak Street Health on May 2, but said the early closing of the acquisition will be "a short-term headwind to our 2023 adjusted earnings per share."

CVS reported using a $5 billion term loan agreement to finance the transaction, but sees the early closing as a move to accelerate growth between the two companies. 

Through the acquisition, CVS adds Oak Street Health's value-based primary care network with more than 160 clinics in 21 states to its portfolio. 

Both acquisitions, according to CVS, will help the company drive better patient experiences and health outcomes.

This comes as CVS reported $2.1 billion in profit for the first quarter of 2023.

"We delivered another strong quarter while executing on the strategy we outlined in December 2021, leading to the close of the Signify Health acquisition followed quickly by Oak Street Health. These additions are core to our strategy and will help unlock future growth as we push further into value-based care, which prioritizes keeping people healthy," CVS President and CEO Karen Lynch said.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars