Chicago-based Oak Street Health, which CVS Health is planning to acquire, reported a net loss of $509.7 million in 2022 as it continued to expand the number of centers it operates.
Oak Street, a value-based care provider for adults on Medicare, took its total centers from 129 at the end of 2021 to 169 as of Dec. 31, 2022. It cared for 224,000 patients in total during the year, Oak Street said.
The 2022 loss compared with a net loss of $414.6 million in 2021. Revenues increased by 51 percent to total $2.16 billion.
CVS Health agreed Feb. 8 to acquire Oak Street for $10.6 billion.
Under the terms of the agreement, CVS will be obliged to pay Oak Street a termination fee of $500 million if certain conditions are not met or the regulatory approval process fails to complete. Conversely, if Oak Street accepts an alternative offer, it will be obliged to pay CVS $300 million.