Oak Street Health Acquisition, Valuation, Funding & Investors

Oak Street Health was acquired by CVS Health for $11B in February 2023, a 4.9x multiple on $2.2B of revenue.

Oak Street Health acquisition price

$11B

Acquired by CVS Health · Feb 2023

Oak Street Health revenue at acquisition

$2.2B

Last twelve months · Feb 2023

Oak Street Health revenue multiple at acquisition

4.9x

EV/Revenue · Feb 2023

Cumulative funding Oak Street Health raised

$105M

across 2 funding rounds

Oak Street Health Overview

About Oak Street Health

Oak Street Health is a Chicago-headquartered provider of primary care clinics targeting Medicare-eligible adults in underserved urban communities across 20 states. Founded in 2012, the company operates value-based care centers emphasizing preventive health, chronic disease management, and social support services. In 2023, CVS Health acquired Oak Street Health, expanding its clinic network to integrate with retail pharmacies for comprehensive patient care.


Founded

2012

HQ

United StatesChicago, IL

Status

Acquired

Customer focus

B2C

Revenue model

Services

Revenue

$2.2B (Feb 2023)

Valuation

$3B (May 2018)

Oak Street Health Acquisition

Oak Street Health was acquired by CVS Health for $11B on 8 February 2023.

The acquisition price implies a 4.9x revenue multiple on $2.2B of revenue.

Before the acquisition Oak Street Health had raised $105M across 2 funding rounds.

CVS Health completed its acquisition of Oak Street Health, a value-based primary care provider focused on Medicare patients with 169 centers across 21 states, on May 2, 2023, after announcing the all-cash deal on February 8, 2023, for $39 per share representing an enterprise value of approximately $10.6 billion. The transaction was financed with $5.0 billion in term loan borrowings and existing cash. Oak Street Health operates as a multi-payor primary care provider within CVS Health, broadening its value-based care platform to improve outcomes and reduce costs, especially for underserved communities. The strategic rationale centers on vertical integration, combining Oak Street's primary care expertise with CVS's retail pharmacies, MinuteClinics, Aetna insurance, and Signify Health in-home evaluations to create a comprehensive care delivery model. CVS expects Oak Street's network to expand to over 300 centers by 2026, each potentially generating $7 million in adjusted EBITDA at maturity, yielding over $2 billion in embedded adjusted EBITDA, plus more than $500 million in synergies. The deal enhances CVS's Medicare Advantage capabilities and long-term growth in primary and chronic care management.

Oak Street Health acquisition details
AcquirerDateTypePriceEV/Revenue
8 Feb 2023Strategic M&A$11B4.9x

Oak Street Health Valuation

Oak Street Health is currently valued at $3B, based on its undisclosed-stage round in May 2018.

Oak Street Health valuation by funding round

Oak Street Health valuation by funding round
DateStageValuation
May 2018Undisclosed stage$3B

Oak Street Health Funding History

Oak Street Health has raised a total of $105M across 2 funding rounds.

Oak Street Health's first fundraising round was a $40M undisclosed-stage round in March 2015. The most recent completed round was a $65M undisclosed-stage round in May 2018.

Oak Street Health funding rounds

Oak Street Health funding rounds
DateStageInvestorsRaisedValuationDeal Summary
May 2018Undisclosed stage-$65M$3BOak Street Health is a HealthTech company headquartered in Chicago, IL, founded in 2012, specializing in primary care for Medicare patients, particularly those with chronic illnesses in underserved communities. The company operates tech-enabled value-based primary care centers focused on older adults. It had approximately 2500+ employees at the time of later reports. Oak Street Health pioneered private equity-backed value-based care models for Medicare Advantage, establishing a scalable playbook. In its Series E funding round, Oak Street Health raised $328M led by General Atlantic, with participation from Newlight Partners. The round reached a post-money valuation of $3B. Funds were intended to accelerate product development, expand the team, and scale operations. Prior Series B in 2015 saw $60M from General Atlantic. Later developments include a 2020 IPO raising ~$328M at $5B initial valuation surging to $9.5B, with major stakeholders like General Atlantic, Humana (5.7% stake), and founders benefiting significantly. Humana Ventures and others were early investors. The company continued growth, securing a $300M credit facility in 2022 from Hercules Capital and Silicon Valley Bank for operational expansion. It was acquired by CVS Health in a $10.6B deal announced February 2023 and closed May 2023, reconfirming market viability and providing exits for backers like General Atlantic.
Mar 2015Undisclosed stageHarbour Point Capital (lead); Quantum Strategic Partners (lead); Oxeon Partners$40M-Oak Street Health operates primary care centers serving Medicare beneficiaries, using a value-based care model with capitated payments to manage chronic illnesses and prevent acute events. The company combines innovative care delivery, technology, and community outreach for Medicare-eligible patients, focusing on total cost of care management. Oak Street Health raised over $500 million total in private equity from various investors including General Atlantic and others before its eventual acquisition by CVS Health in 2023.

Who has invested in Oak Street Health?

3 investors have backed Oak Street Health across its funding rounds, including Oxeon Partners, Quantum Strategic Partners and Harbour Point Capital.

Lead investors include Harbour Point Capital and Quantum Strategic Partners.


Oak Street Health Investors

Investors in Oak Street Health by funding rounds participated
InvestorHQRoundsRoleFirst check
Quantum Strategic PartnersUnited StatesNew York City, NY1LeadMar 2015

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Acquisitions by Oak Street Health

Oak Street Health has acquired 1 company to date.

Last acquisition by Oak Street Health was on October 21st 2021. Oak Street Health acquired RubiconMD for $130M.


Latest Acquisitions by Oak Street Health

RubiconMD
Description
RubiconMD is a New York-headquartered telemedicine platform delivering web-based eConsults for primary care providers. Physicians consult specialists asynchronously to resolve patient cases without in-person referrals, integrating with electronic health records from Epic and Cerner. Launched in 2013, the service partners with health systems such as ChenMed and One Medical across the United States, enhancing care quality while cutting specialist visit costs by up to 70 percent.
HQ CountryUnited States
HQ City
New York City, NY
Deal Date21 Oct 2021
Valuation$130M
EV/Revenue
EV/EBITDA

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Oak Street Health Competitors

Oak Street Health competitors include listed companies like Fortis Healthcare, Universal Health Services, Molina Healthcare and Max Healthcare Institute, and private ones like Ping An Healthcare Management and Devoted Health.

Public and private companies comparable to Oak Street Health
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Fortis HealthcareIndiaIndiaPublicly listed$943M$215M$7B7.1x
Universal Health ServicesUnited StatesUnited StatesPublicly listed$17B$2.7B$11B0.9x
Molina HealthcareUnited StatesUnited StatesPublicly listed$45B$976M$11B0.1x
Max Healthcare InstituteIndiaIndiaPublicly listed$858M$232M$10B10.2x
Ping An Healthcare ManagementChinaShanghaiPrivate--$8.8B-
Devoted HealthUnited StatesBoston, MAPrivate$3.3B-$13B4.0x
Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Universal Health Services$17B$2.7B0.9x0.9x5.8x6.1x
Molina Healthcare$45B$976M0.1x0.1x5.9x7.2x
Max Healthcare Institute$858M$232M12.6x10.2x46.5x36.8x
Aier EYE Hospital Group$3.3B$955M3.4x3.3x11.9x11.6x
Manipal Health$1.1B$296M9.6x9.0x37.2x36.3x
Bangkok Dusit Medical Services$3.3B$815M3.0x2.9x12.5x12.1x
DaVita$14B$2.6B1.9x1.9x9.9x9.1x
Ramsay Health$13B$868M1.4x1.3x19.6x10.1x

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Common questions about Oak Street Health

When was Oak Street Health founded?Oak Street Health was founded in 2012.
Where is Oak Street Health headquartered?Oak Street Health is headquartered in Chicago, IL, United States.
Is Oak Street Health publicly listed?No, Oak Street Health was acquired by CVS Health in February 2023.
Who acquired Oak Street Health?Oak Street Health was acquired by CVS Health in February 2023.
How much was Oak Street Health acquired for?Oak Street Health was acquired for $11B in February 2023, a 4.9x revenue multiple.
What is Oak Street Health's valuation?Oak Street Health was last valued at $3B in its undisclosed-stage round in May 2018.
How much funding has Oak Street Health raised?Oak Street Health has raised $105M across 2 funding rounds.
What was Oak Street Health's last funding round?Oak Street Health's last funding round was a $65M undisclosed-stage round in May 2018.
Who are Oak Street Health's investors?Oak Street Health's investors include Quantum Strategic Partners, Oxeon Partners and Harbour Point Capital.
Which companies are comparable to Oak Street Health?Companies comparable to Oak Street Health include Fortis Healthcare, Universal Health Services, Molina Healthcare, Max Healthcare Institute, Ping An Healthcare Management and Devoted Health.
How many companies has Oak Street Health acquired?Oak Street Health has acquired 1 company, including RubiconMD.
What was the largest acquisition by Oak Street Health?The $130M acquisition of RubiconMD in October 2021 is the largest acquisition Oak Street Health has made to date.

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