Oak Street Health, a key component of CVS Health Corp.’s new Health Services segment, is expanding into four new states this summer, the company disclosed Wednesday.
“One of the most critical ways we advance our mission to rebuild healthcare as it should be is by bringing our high-quality primary care and unmatched patient experience to more older adults across the country,” Mike Pykosz, CEO of Oak Street Health, said in a statement. “We look forward to meeting and caring for new deserving patients in Arkansas, Iowa, Kansas and Virginia, as well as the opportunity to create meaningful jobs for those passionate about improving health outcomes for patients and bridging health equity gaps in their communities.”
The expansion into these four new states will mark a total of 25 states in which Oak Street Health serves older adults, the company said. Specifically, it plans to open centers in Little Rock, AR; Des Moines and Davenport, IA; Kansas City, KS; and Richmond, VA.
Earlier this month, CVS disclosed that it formed a new Health Services unit that unifies home-based care services, primary care, retail health clinics, a pharmacy services segment and provider-enablement capabilities. Oak Street Health and tech-enabled home care firm Signify Health, both of which CVS acquired this year, are pillars of this new segment and drivers of the company’s value-based strategy, CVS President and CEO Karen S. Lynch said.
“These acquisitions significantly advance our value-based strategy by adding primary care, home-based care and provider enablement capabilities to our platform,” she said. “They also bring cutting-edge technology and talent that will accelerate innovation in areas such as automation, analytics and technology enabled data-driven product development. These premier growth businesses strongly enhance our ability to execute our care delivery strategy.”
Oak Street Health delivers care through an integrated model that incorporates behavioral healthcare and social determinants support and is easily accessible through a mix of in-center, in-home and telehealth appointments, as well as a 24⁄7 patient support line, the company said. It has reduced patient hospital admissions by approximately 51% compared to Medicare benchmarks, and driven a 42% reduction in 30-day readmission rates and a 51% reduction in emergency department visits.
