Copyright NBC 5 Chicago
CVS Health will close 16 "underperforming" Oak Street Health primary care clinics in 2026, including one in Chicago, a CVS Health spokesperson confirmed to NBC Chicago. The move follows a "comprehensive review" of the clinic footprint, Brian Newman, CVS Health executive VP & CFO said Tuesday's Q3 earnings report. It comes two years after CVS Health bought Chicago-based Oak Street Health primary care clinics for $10.6 billion. "We made the difficult decision to close 16 Oak Street Health centers by the end of February 2026," the spokesperson said. The Chicago location set to close is at 3433 W. Madison Street, near Garfield Park, the company said. The chain of clinics, which specializes in certain Medicare patients, operate 230 centers across the country, including more than 30 in Illinois. It wasn't immediately clear which other centers were set for closure. According to the spokesperson, the closures "positions Oak Street Health for sustainable, long-term growth as we continue to navigate external challenges, such as elevated medical costs, CMS risk adjustment model changes, and health plan payer dynamics." "We continue to believe in Oak Street Health and its proven care model to deliver better clinical outcomes for our patients," the spokespersons said. Oak Street Health specializes in Medicare Advantage patients. CVS Health and competitor Walgreens both pushed aggressively into adding clinics to their stores a few years ago with the goal of becoming a bigger source of care, which can drive business to pharmacies. But the companies have since scaled back those ambitions under new leadership. CVS Health executives said Wednesday they still believe in the approach, which involves value-based care that aims to keep patients healthy instead of just treating them when they are sick. But the company also acknowledged that the business is dealing with challenges like high levels of use. Industry analysts say that clinics can be tough to run initially because they often add patients who haven’t been seeing a doctor regularly. Companies then need to spend money on those customers to improve their health and get chronic diseases under control. CVS lost nearly $4 billion in the third quarter, including the charge tied to clinics. But total revenue grew almost 8% to $102.9 billion. Adjusted earnings came in at $1.60 per share. Analysts expected earnings of $1.37 per share on $98.81 billion in revenue, according to the data firm FactSet. CVS Health Corp., based in Woonsocket, Rhode Island, runs one of the nation’s largest drugstore chains and a huge pharmacy benefit management business that operates prescription drug coverage for employers, insurers and other big clients. It also covers nearly 27 million people through its Aetna insurance arm.
