CVS seeks private equity funding for Oak Street Health, Bloomberg reports

By Thomson Reuters May 23, 2024 | 2:38 PM

(Reuters) -CVS Health Corp has been seeking a private equity partner to fund growth at Oak Street Health, a primary care provider it bought a year ago, Bloomberg News reported on Thursday.

The company has been working with financial advisers to help find capital to back new clinics that will be opened by Oak Street, Bloomberg News reported, citing people familiar with the matter.

The report said the deliberations are preliminary, the structure could change and there is no guarantee a deal will be reached.

The U.S. healthcare conglomerate bought Oak Street Health for about $9.5 billion in February last year.

CVS had said in February it planned to nearly double the business to 300 clinics by 2026 and aimed to grow the number of Oak Street patients over time.

CVS did not immediately respond to a Reuters request for comment.

(Reporting by Sneha S K in Bengaluru; Editing by Shailesh Kuber)