CVS seeks PE investors for new clinics: What ASCs need to know

CVS Health is looking for private equity firms to help fund Oak Street Health's expansion and addition of new clinics, Bloomberg reported May 23. 

Here are five things to know:

1. CVS reached out to several firms about a joint venture to add clinic sites, sources told Bloomberg. 

2. CVS closed on its $11.5 billion acquisition of the Chicago-based primary care organization Oak Street in May 2023. By 2026, CVS Health expects to have more than 300 locations and has opened 31 new clinics since the acquisition. 

3. Oftentimes clinics like Oak Street lose money in the first few operating years, according to the Bloomberg report, so the investment could help CVS avoid losses. 

4. In March 2023, it completed an $8 billion acquisition of Signify Health, adding 10,000 clinicians. CVS and Signify said they intend to work to lower costs and improve patient care, engagement and access, with a focus on Medicare Advantage customers.

5. In February, CVS Health closed 25 of its MinuteClinic locations across Los Angeles to ensure patient and consumer demands align with its healthcare delivery strategy.

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