Building a network of primary care centers for Medicare patients
Oak Street Health is a network of value-based, primary care centers for adults on Medicare. Founded in 2012, the company operates centers across multiple states. Its purpose-built, integrated care model enhances care coordination and preventative interventions by combining dedicated care teams with a technology-enabled workflow to drive measurably better patient outcomes while providing a vastly improved consumer experience. Oak Street Health priced its initial public offering in August 2020 (NYSE: OSH). Oak Street Health was acquired by CVS Health in 2023.
- Status: Realized
- Sector: Healthcare
- Investment Year: 2015
- Region: North America
Newlight took the time to really understand our business drivers. Their grasp of how patient outcomes translate to financial performance allowed them to have the confidence to invest in the early stages, as we were still proving out unit economics. Newlight’s effort made them a reliable capital source and a valued partner.
Oak Street Health’s Co-Founder & CEO on Newlight’s deep understanding and support of the business.
Background and Newlight Value Add
Newlight believes the US healthcare system is undergoing a fundamental transformation towards value-based arrangements that align provider economics with patient outcomes. Newlight believes that Oak Street Health is built from the ground up to operate under these value-based arrangements. The company focuses on a large and growing population that is most likely to see improved health outcomes as a result of greater access to high-quality primary care.
Capital Raising & Structuring
Newlight led Oak Street Health's first institutional capital raise and helped guide the company in raising additional capital from new institutional and strategic sources to support an accelerated growth plan for the business.
Newlight leveraged its deep experience in the insurance space to assist in Oak Street Health's transition to a full-risk contracting model, helping establish a comprehensive unit economic view of the business and implement best practice risk reporting and monitoring procedures.
Newlight partnered with the founders in setting strategic priorities and collaborated with the management team to balance the pace of new center growth with the evolution of the company’s key unit economic value drivers.