Publications
Publications
  • February 2024
  • Case
  • HBS Case Collection

Oak Street Health: From Start-up to Strategic Acquisition

By: Leemore S. Dafny and Thomas H. Lee
  • Format:Print
  • | Language:English
  • | Pages:22
ShareBar

Abstract

Oak Street Health opened its first primary care center for seniors in underserved communities in 2013. By 2022 the company had 169 centers and a market valuation exceeding $10 billion. Oak Street created value by accepting risk-adjusted, capitated payments for Medicare enrollees and reducing the expected spending for these enrollees through high-quality, high-touch primary care. In 2023 CVS Health acquired Oak Street on the thesis of substantial synergies across its various businesses. Which among these synergies was most important to prioritize, and what tradeoffs might be created by pursuing these opportunities?

Keywords

Value Creation; Mergers and Acquisitions; Business Strategy; Health Industry

Citation

Dafny, Leemore S., and Thomas H. Lee. "Oak Street Health: From Start-up to Strategic Acquisition." Harvard Business School Case 324-053, February 2024.

About The Author

Leemore S. Dafny

General Management
More Publications

More from the Authors