YTD 2023 Happenings
February 8, 2023, CVS Health® (NYSE: CVS) announced its plan to acquire Oak Street Health (NYS: OSH) for approximately $10.6 billion. In the press release, CEO Karen Lynch stated that “Combining Oak Street Health’s platform with CVS Health’s unmatched reach will create the premier value-based primary care solution.” Following the closing of this transaction, Oak Street Health will be a part of CVS Health’s new health care delivery organization. The FTC waiting period for this transaction has expired, and it is expected that the transaction will close by July.¹
February 22, 2023, Amazon (NASDAQ: AMZ) closed its $3.9 billion acquisition of One Medical. Neil Lindsay, senior vice president of Amazon Health Services stated in the press release announcing the transaction that Amazon is “on a mission to make it dramatically easier for people to find, choose, afford, and engage with the services, products, and professionals they need to get and stay healthy, and coming together with One Medical is a big step on that journey.”
March 29, 2023, CVS Health® (NYSE: CVS) announced that it had completed its $8 billion acquisition of Signify Health. Signify Health is a technology-enabled services company that supports clinical professionals in treating and caring for patients at home. This transaction is a step closer towards CVS Health’s goal to be a part of the “entire spectrum of someone’s health journey”, as stated by CEO Karen Lynch in the fall of 2022. ²
April 19, 2023, Pitchbook reported that KKR & Co.’s Envision Healthcare is working to restructure its debt, and also considering filing for chapter 11 bankruptcy. Envision has been navigating significant losses due to increased labor costs, a payor contract dispute with UnitedHealthcare, and the impact of the federal No Surprises Act.
April 26, 2023, Kaiser Permanente and Geisinger announced that they are coming together to “launch Risant Health and expand access to value-based care.” Risant Health is a new nonprofit organization created by Kaiser Foundation Hospitals. Geisinger will be the first health system to join Risant Health, and Kaiser leadership indicated that Kaiser is “aiming to invest $5 billion into Risant over the next half decade and expects to add “five or six” additional systems to the new entity.” ³
Although the shift is slower than initially predicted, healthcare continues to move away from fee-for-service “sick care” and towards value-based “well care” and rewarding outcomes instead of volume. In connection with this trend, the industry will continue to see investment and growth of companies that allow care to be provided to patients conveniently, accessibly, and in their homes.
