CVS to Open 26 Oak Street Health Clinics Within Its Stores

CVS is making significant strides in expanding its healthcare services by announcing plans to open 26 Oak Street Health clinics inside existing CVS stores across 14 states by the end of this year. Since January, the retailer has successfully opened eight of these dual-branded locations, with an additional 18 slated for launch by the end of 2024, according to a CVS spokesperson in a report to Supermarket News.

The initiative will add to the two co-located clinics that opened last year, bringing the total to 26 new Oak Street Health/CVS pharmacy sites. Recently, three clinics were launched in the Chicago neighborhoods of Belmont Cragin and West Lawn, as well as in the suburb of Cicero. Plans for additional combined outlets are underway in major areas, including New York City, Dallas-Fort Worth, and Columbus, Ohio, as reported by Forbes magazine.

In parallel, CVS is also set to introduce 25 stand-alone Oak Street Health clinics by the year’s end. These integrated clinic/pharmacy locations will feature an expanded pharmacy area, complemented by a curated selection of health and wellness products alongside the Oak Street Health clinic. Oak Street Health specializes in providing primary care for Medicare-eligible adults, particularly older individuals with chronic conditions. CVS acquired the chain last year for $10.6 billion, and it now boasts over 200 stand-alone locations.

“Coupling these two powerful CVS Health assets advances the company’s strategy to deliver personalized health care experiences in a more integrated way, especially for senior patients with complex or chronic health conditions,” stated Mike Pykosz, executive VP and president of health care delivery for CVS Health. He emphasized the positive impact of Oak Street Health’s value-based model, which has been effective in lowering overall patient care costs.

This strategic move comes amid a broader trend where competitors, such as Walgreens and Walmart, are scaling back their primary-care clinic expansion plans. Walmart recently closed all 51 of its Walmart Health clinics, and Walgreens has shut down several of its VillageMD locations.

The CVS initiative is part of CVS Healthspire, the company’s newly rebranded health services division. Oak Street Health clinics are designed to cater to older adults, providing essential primary care services. The company has reported a significant impact, reducing patient hospital admissions by approximately 51% and achieving a 42% decrease in 30-day readmission rates, along with a 51% reduction in emergency department visits compared to Medicare benchmarks.

The Oak Street Health/CVS Pharmacy locations will feature integrated care teams, allowing pharmacists to collaborate effectively with healthcare providers to enhance patient outcomes. Michele Mitchell, executive medical director at Oak Street Health, stated, “Given our scale and unique set of integrated capabilities, this innovative new format is one of the many ways we are looking to connect care to help patients more seamlessly navigate a complicated system and help ensure they’re getting the care they need to stay healthy.”

Importantly, the CVS pharmacies at these locations will remain open to the public. In addition to this initiative, CVS operates the MinuteClinic walk-in healthcare chain, which has more than 1,100 locations across 33 states, further enhancing its commitment to accessible healthcare.