Oak Street Health Risk Report

🛡️ Financial & Liquidity

Oak Street Health has faced significant financial challenges, with a key event occurring when Oak Street Health was acquired by CVS Health in a $10.6 billion deal. This acquisition aims to bolster CVS's primary care capabilities. Despite this, Oak Street Health has shown expansion plans, indicating a potential positive shift in their financial trajectory.

• Oak Street Health was acquired by CVS Health in a deal worth $10.6 billion 🗓 February 8, 2023.
• Oak Street Health reported a $510 million loss for the year, outlining risks related to their acquisition by CVS 🗓 March 1, 2023.
• Oak Street Health secured $300 million in financing to support ongoing operations 🗓 November 16, 2022.

⚖️ Legal & Regulatory

The company has encountered legal challenges, most notably involving settlements and regulatory investigations. These legal issues, including a significant $60 million settlement, indicate ongoing risks concerning compliance and regulatory oversight.

• Oak Street Health agreed to pay $60 million to settle allegations of a kickback scheme 🗓 September 18, 2024.
• DOJ investigation into Oak Street Health's third-party marketing and transportation relationships was reported 🗓 November 9, 2021.

👥 Labor & Workforce

There have been notable changes within the company's workforce, primarily highlighted by executive departures. These transitions may impact the company's strategic direction and operational effectiveness.

• Former CEO Mike Pykosz exited the company, creating a significant leadership shift 🗓 November 19, 2024.
• Co-founder of Oak Street Health departed from CVS Health, affecting the leadership team 🗓 November 19, 2024.

🏗️ Operational & Business Continuity

Oak Street Health is focusing on business expansion and continuity, particularly through its partnerships and clinic openings. These initiatives are pivotal in addressing their operational risks by enhancing service offerings and geographical reach.

• Oak Street Health planned expansions into four new states to extend their primary care services and reach more older adults 🗓 June 1, 2023.
• A new health care facility focused on seniors was opened in Topeka, signaling growth in key markets 🗓 November 18, 2024.

📜 Innovation & R&D

The company's plans for innovation seem to focus on expanding service models and partnerships to enhance patient care. These strategic moves underscore Oak Street Health's commitment to innovating within the healthcare sector.

• Oak Street Health reported the launch of a joint venture to offer primary care within dialysis centers 🗓 March 24, 2023.
• Oak Street Health expanded virtual specialty care with a $130 million deal for RubiconMD 🗓 October 22, 2021.