CVS Health intends to close 16 Oak Street Health clinics two years after acquiring the senior-focused primary care chain for $10.6 billion.
The healthcare giant will shutter the centers by the end of February 2026 and continue to have 230 Oak Street Health clinics across 27 states. CVS is scaling back after originally planning to open 300 of the locations, which serve older adults on Medicare.
“The move positions Oak Street Health for sustainable, long-term growth as we continue to navigate external challenges, such as elevated medical costs, CMS risk adjustment model changes and health plan payer dynamics,” a CVS spokesperson told Becker’s. “We continue to believe in Oak Street Health and its proven care model to deliver better clinical outcomes for our patients.”
CVS declined to disclose the locations of the closing centers but said it has notified clinic staffers, considering them for other jobs within the company where possible.
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