CVS is getting into the primary care business with the $10.6 billion purchase of Oak Street Health.
The pharmacy chain said the goal of the acquisition is to help customers reduce health costs and improve outcomes, particularly among more at-risk populations.
“Combining Oak Street Health’s platform with CVS Health’s unmatched reach will create the premier value-based primary care solution,” said CVS Health President and CEO Karen S. Lynch. “Enhancing our value-based offerings is core to our strategy as we continue to redefine how people access and experience care that is more affordable, convenient and connected.”
Oak Street Health, founded in 2012, operates 169 medical centers across 21 states and employs 600 primary care providers. Its biggest pool of customers are recipients of Medicare.
The company said the additional resources from CVS will help bolster the company's already technologically-forward approach to health care, as it plans to have over 300 centers by 2026.
“This agreement with CVS Health will accelerate our ability to deliver on our mission and continue improving health outcomes, lowering medical costs, and providing a better patient experience while offering significant value to our shareholders,” said CEO Mike Pykosz.
Over the last decade, CVS has made a number of acquisitions in the healthcare industry. It purchased Omnicare, a nursing home network, for $13 billion in 2015 and Aetna, a nationwide health insurance company, for a whopping $69 billion in 2017.
It had also tried to acquire another primary care provider, One Medical, although Amazon beat it to the punch. The e-commerce company successfully purchased it for $3.5 billion in July.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
