CVS seeks private equity funding to open new Oak Street sites: Bloomberg

CVS Health is seeking an investor to fund the expansion of Oak Street Health, Bloomberg reported May 23. 

Sources familiar with the matter told Bloomberg CVS has reached out to a handful of private equity firms about a joint venture to add new clinic sites. 

CVS Health acquired Oak Street Health, a chain of primary care clinics that caters to Medicare beneficiaries, for $10.6 billion in 2023. CVS operates more than 200 Oak Street clinics in 25 states, according to Bloomberg. CVS has opened 31 new clinics since acquiring Oak Street. 

According to Bloomberg, clinics like Oak Street tend to lose money in the first few years of operating as they acquire patients. Sources told Bloomberg a potential joint-venture could help CVS avoid keeping these losses on its balance sheet. 

CVS Health declined to comment to Bloomberg. 

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