The Game-Changing Partnership: Why CVS Buys Oak Street Health

The Game-Changing Partnership: Why CVS Buys Oak Street Health

CVS Health, the largest pharmacy health care provider in the U.S., has recently announced its acquisition of Oak Street Health. This move is considered a game-changer for primary care delivery, as it strengthens CVS’s position as a major healthcare player, while enabling Oak Street to scale its innovative approach to care for underserved seniors.

So why did CVS buy Oak Street Health? Let’s take a closer look.

A Shared Goal of providing Accessible and Affordable Healthcare

Oak Street Health is a network of primary care centers that provides personalized, preventive care to adults on Medicare. They currently serve more than 85,000 patients across 14 states. What sets Oak Street apart is its patient-centered approach that prioritizes addressing the root causes of health problems, rather than simply treating the symptoms.

CVS Health shares a similar goal of providing accessible and affordable healthcare to as many people as possible. With the acquisition of Oak Street Health, CVS can expand its services beyond traditional retail pharmacy offerings. By integrating primary care into its existing capabilities, CVS can offer a one-stop-shop healthcare destination.

The Benefits of Scale

Oak Street Health’s innovative approach has proven successful, but as a small-scale player, scaling up to reach more patients was a challenge. CVS and its expansive network of over 10,000 retail locations, coupled with its partnerships with payers, hospital systems, and community organizations, provides access to resources that Oak Street could never achieve on its own.

The integration of Oak Street within CVS’s network will also streamline the healthcare delivery process, reducing administrative burdens on patients and providers, which can be a major barrier to care.

Creating a Better Customer Experience

The acquisition of Oak Street Health by CVS also highlights the importance of creating a more positive customer experience. Instead of patients visiting a variety of providers carrying different systems, CVS Health and Oak Street bring together primary care, pharmacy, and other services under one roof. This ease of access and coordination should eventually translate to improved health outcomes.

Improving Healthcare in the U.S.

The partnership between CVS and Oak Street has great potential to improve healthcare in the U.S. With CVS’s reach, Oak Street Health can expand its reach to serve many more seniors. Increased scale also allows for more data to be collected, which could inform better clinical decision-making and population health management.

Healthcare is going through a period of rapid transformation driven by changing consumer needs, technological innovation, and cost pressures. The acquisition of Oak Street Health by CVS is a strategic response to these trends, creating a new model for delivering patient-centered care. As this partnership evolves, it will be interesting to see what new products and services are developed and what impact they have on the healthcare industry.