CVS plans foray into urgent care with $9.5 billion Oak Street Health deal

CVS Health said on Wednesday it would buy primary care provider Oak Street Health for about $9.5 billion in cash as the pharmacy giant looks to foray into the urgent care business.

The company, which also operates a health insurance unit and a pharmacy benefits manager, said it will pay $39 per Oak Street Health share, a nearly 16% premium to the stock’s last closing price, to acquire hundreds of its clinics and doctors offices.

With the acquisition of Oak Street, CVS will get control over 160 primary care centers that serve those insured under the U.S. government’s Medicare program, which is for people aged 65 years and older or who qualify because they have a disability.

Primary care centers typically offer routine health screenings, preventive medicine as well as diagnosis, and management and treatment of a wide variety of chronic health problems.

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