It's a tough time for big companies that have tried to scale up their primary care offerings. CVS has sought a private equity company to back growth at care provider Oak Street Health, Bloomberg reported. The healthcare giant bought the latter last year for $10.6 billion.
Discussions are preliminary and CVS reportedly approached a few private equity firms about a joint venture to fund new clinics that would become part of Oak Street's expansion.
"Clinics like the ones operated by Oak Street focus on serving seniors in privately managed Medicare plans," they wrote. "The new clinics tend to lose money for a few years while they recruit patients. A joint-venture could help house some of the losses related to investing in them and take them off CVS' balance sheet, the people added."
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