CVS Health is nearing a deal to purchase Chicago-based Oak Street Health, a primary care network with more than 160 clinics in 21 states, according to The Wall Street Journal.
The deal would be a $10.5 billion transaction and could be announced later this week. Oak Street shares spiked 35 percent after news of the potential deal broke, according to MarketWatch.
Oak Street focuses on Medicare beneficiaries and would expand CVS Health's footprint in primary care. The acquisition could also tie in with CVS's Aetna, and Oak Street has around 159,000 patients under value-based care arrangements, according to the Journal. The clinics accept most major insurances, including Humana, Cigna, Anthem, UnitedHealthcare and BlueCross Blue Shield, in addition to Aetna.
If the two companies come to an agreement, this would be CVS Health's second multibillion-dollar deal in the last seven months. In September, CVS Health announced plans to acquire Signify Health for around $8 billion. Signify is a network of more than 10,000 clinicians in all 50 states.
The company has made two other smaller, but still significant, moves into primary care since 2023 began.
CVS Health's venture capital arm invested $100 million in Carbon Health, a hybrid company focused on primary and virtual care, earlier this year. Carbon Health has 125 physical locations across the U.S. and virtual care.
CVS Health also debuted a new primary care and mental health services virtual offering in January. The platform connects eligible Aetna members with physicians and nurse practitioners who can also consult with pharmacists to support patients.