US-based Oak Street Health has announced the acquisition of virtual specialty care provider RubiconMD.
With this deal, Oak Street Health will be able to incorporate virtual specialty care into its existing care model, which will help the company to improve the patient experience and offer a comprehensive care far beyond traditional primary care.
Oak Street Health CEO Mike Pykosz said: “Oak Street Health is on a mission to rebuild healthcare as it should be, which we are doing by focusing on preventive care and driving more resources into the primary care setting.
“RubiconMD’s technology platform and national footprint allows us to scale the model across our current and future markets to further our mission.”
According to media reports, RubiconMD acquired Oak Street Health for a consideration of $190m, which includes $130m in cash and the remaining $60m in milestone payments.
Currently, RubiconMD network has more than 230 specialists, who cover specialties such as cardiology, nephrology and pulmonology.
It also offers clinical insights from specialists on specific patient cases, which will allow primary care providers to manage and coordinate more of the care needs of patients directly.
RubiconMD co-founder and CEO Gil Addo said: “Carlos Reines and I founded RubiconMD to democratise medical expertise so that primary care providers can offer all patients the care they deserve, and we are thrilled for this next step with Oak Street Health.
“We share similar cultures and values, as well as a commitment to delivering high-quality patient care and lowering costs, and we look forward to continuing to innovate together.”
Established in 2012, Oak Street Health operates primary care centres network for adults on Medicare. At present, it operates more than 100 centres across 18 states in the country.
For this deal, Kirkland & Ellis served as legal counsel to Oak Street Health, while Gunderson Dettmer Stough Villeneuve Franklin & Hachigian acted as legal counsel.
Cantor Fitzgerald & Co. acted as exclusive financial advisor to RubiconMD in connection with the transaction.