'A very troublesome expansion': How CVS Health's $10.6B acquisition could affect ASCs

CVS Health recently confirmed it will acquire primary care company Oak Street Health in an all-cash deal worth $10.6 billion.

Suzi Cunningham, administrator of Advanced Ambulatory Surgery Center in Redlands, Calif., joined Becker's to discuss the consolidation trends she is monitoring. 

Editor's note: These responses were edited lightly for brevity and clarity. 

 Question: What consolidation trends are you eyeing? 

Suzi Cunningham: I can't help but notice the consolidation occurring amongst the payers. We have major payers that now (indirectly) own medical groups, independent physician associations, hospitals, pharmacies, etc. … It has been argued that the consolidation will drive improvements in care coordination and increase efficiencies, but what I see are companies buying up their competition and thereby creating greater power in their market.  

The CVS purchase of Oak Street will undoubtedly result in CVS seeking to extract $800 million in profits that were intended for healthcare services. This underscores the fundamental problem where there is now a very troublesome expansion of for-profit corporations looking at patients as sources of revenue and profit and not as humans in need of care.

 

Copyright © 2025 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


You can unsubscribe from these communications at any time. For more information, please review our Privacy Policy.
 

Articles We Think You'll Like