CVS Health Corp. (NYSE:CVS) is reportedly seeking a private equity partner to fund the expansion of Oak Street Health, the $10.6 billion primary care provider it acquired last year. The company is working with financial advisers to secure capital for new Oak Street clinics and is contacting several private equity firms about a potential joint venture. Oak Street Health focuses on serving seniors in privately managed Medicare plans. The new clinics typically incur losses for the first few years w
Based on the average brokerage recommendation (ABR), CVS Health (CVS) should be added to one's portfolio. Wall Street analysts' overly optimistic recommendations cast doubt on the effectiveness of this highly sought-after metric. So, is the stock worth buying?
The company has been working with financial advisers to help find capital to back new clinics that will be opened by Oak Street, the report said, citing people familiar with the matter. A potential CVS-private equity partnership would help lessen the capital investment burden associated with the build out of the Oak Street Health clinic base, Leerink Partners analyst Michael Cherny said in a note. The U.S. healthcare conglomerate bought Oak Street Health for about $9.5 billion in February last year.