CVS Health said that it will spend about $10.6 billion to buy Oak Street Health, which runs clinics that specialize in treating Medicare Advantage patients.
The money being spent tells of a rapid expansion in value-based care, an approach to medicine that is growing popular with bill payers like the federal government’s Medicare program.
Oak Street specializes in this care. Its centers use doctors, social workers and other care providers to help people manage their health. CVS Health CEO Karen Lynch told analysts Wednesday that she sees primary care as a key to improving patient health. She noted that although it represents only about 10% of health care spending nationally, the specialty holds “significant influence” over health care use.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.
CVS Health Corp. leaders have been talking for well over a year about adding more primary care as rivals that also include UnitedHealth Group beef up their medical staffs.
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