CVS exploring $10B-plus acquisition of Oak Street Health

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Oak Street, with a market value of about $5.5 billion, rose as much as 32% in after-hours trading.

CVS, a major drugstore operator, has been expanding more directly into health care via acquisitions, agreeing last year to buy Signify Health Inc., a deal that should close in the first half of 2023.

Oak Street, which went public in 2020, aims to reinvent care for Medicare patients with low incomes and chronic health problems. The company says its high-touch approach — frequent checkups, preventive screenings and meetings with social workers — can reduce patients’ medical costs.

 

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