CVS Health to Close 16 Underperforming Oak Street Health Clinics

October 31, 2025 - 02:48

CVS Health has announced the closure of 16 Oak Street Health clinics, which primarily serve Medicare patients. This decision follows the company's acquisition of Oak Street Health in 2023 for a substantial $10.6 billion. The clinics targeted for closure have been identified as underperforming, indicating challenges in meeting operational and financial expectations.

Among the closures is one clinic located in Chicago, a significant urban area where healthcare access is crucial. The closures are part of a broader strategy to streamline operations and focus on clinics that demonstrate stronger performance and better serve the community's healthcare needs.

CVS Health's investment in Oak Street Health was aimed at expanding its footprint in the healthcare sector, particularly in providing value-based care to older adults. However, the decision to shut down these specific locations reflects the ongoing challenges faced in managing a diverse portfolio of healthcare facilities. The company continues to evaluate its operations to enhance service delivery and patient outcomes in the future.