CVS Health Agrees to Acquire Oak Street Health for $10.6 Billion

CVS Health is plunging deeper into primary care services, buying primary care provider Oak Street Health for approximately $10.6 billion.

The drugstore chain said Wednesday it would pay $39 per share in cash for each share of Oak Street in a deal expected to close this year.

Oak Street runs care centers mostly for lower-to-middle income people with Medicare Advantage plans. Those are privately run versions of the federal government’s program for people aged 65 and older.

With its latest acquisition, CVS Health Corp. aims to capitalize on the federal government’s interest in cutting costs and improving the health of people in its Medicare program.

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