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CVS Health plans to close 16 Oak Street Health centers, representing about 7% of its total portfolio of these senior-focused primary care clinics. Doors will shutter by the end of February, and CVS cites rising medical costs as the main reason driving the reduction, according to Forbes. The company did not specify which locations will close but said it will continue to operate 230 Oak Street clinics across 27 states. Increased costs to deliver care among older adults covered by Medicare and Medicare Advantage are putting pressure on health plans (CVS acquired insurer Aetna in 2018) and value-based care providers, calling for adjustments, officials say. Despite the closures, CVS isn’t abandoning Oak Street, which it acquired in 2023. The company plans to shore up operations through technology investments and leadership.
Retail market moves: Recently, CVS acquired 63 former Rite Aid and Bartell Drug retail pharmacy locations in 3 states. All 1,200 Rite Aid locations have now ceased operations as of this month following the company’s bankruptcy.
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