Oak Street Health, a Chicago-based company, filed its initial public offering with the Securities and Exchange Commission. Oak Street is a tech-enabled, value-based care primary care company that specifically targets Medicare-eligible consumers, particularly those in underserved communities.
It has 54 centers in 13 markets across eight states serving 85,000 consumers with about 65% of those are under capitation agreements. The company has 2,300 employees including 250 primary care provider organizations. In its filing, officials said the Medicare-eligible population represents the highest proportion of health care spending in the U.S. Officials said they believe they are chasing a market of $325 billion based on an addressable market of Medicare eligibles of 27 million consumers with an average annual revenue of $12,000 per member.
It joins San Francisco-based direct primary care group One Medical, which went public in January. One Medical operates membership-based medical offices and had yet to be profitable. Its revenues in the three months ending March 31 were $201.8 million, up 72% from $117.4 million in the same period a year earlier. However, Oak Street also has a history of losses, with an accumulated deficit of $369.4 million.
Since the founding of Oak Street Health in 2012, their mission has been to build a primary care delivery platform that directly addresses rising costs and poor outcomes. These are two of the most pressing challenges facing the United States health care industry.
This was reported by Fierce Health on July 13, 2020.
Contact information: Oak Street Health, 30 W Monroe Street, #1200, Chicago, Illinois 60603; 888-723-0423; Website: www.oakstreethealth.com