CVS Health is exploring a sale of Oak Street Health, a primary care provider for Medicare patients, in a deal that could fetch $10 billion. The news was first reported by Bloomberg, which cited people familiar with the matter.

Currently, talks are ongoing between the two companies. The $10 billion figure also includes Oak Street Health’s debt, and the company currently has a market value of $5.5 billion. Oak Street operates 169 centers in the United States, caring for 159,000 patients. According to Bloomberg, private equity firms General Atlantic and Newlight Partners collectively own roughly 39% of Oak Street Health.

The purported deal comes after CVS Health, which operates nearly 10,000 retail pharmacy stores, announced in 2022 it would acquire home healthcare company Signify Health for $8 billion. That deal is expected to close in the first half of 2023. Both deals move CVS Health, which also owns health insurer Aetna, squarely into the healthcare services provider field. The retail pharmacy chain has operated clinics within its stores for many years, but its recent massive acquisitions will extend the brand’s reach in the type of services offered.

The news also comes just after Oak Street Health appointed its first-ever chief wellness officer, creating the position to support provider wellness. Oak Street Health’s provider strategy includes a high-touch approach with patients.

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