Oak Street Health to expand into Arkansas, Iowa, Kansas, Virginia

Oak Street Health will open primary care centers in four more states this year, the CVS Health division announced Wednesday.

Chicago-based Oak Street Health will open clinics in Arkansas, Iowa, Kansas and Virginia beginning this summer, growing its footprint to 25 states. Oak Street Health will also open additional centers in Arizona, Colorado, Georgia, Illinois, Indiana, Louisiana, New York, Ohio and Pennsylvania this year, according to a news release.

The company’s expansion plans come less than a month after CVS Health finalized its $10.6 billion acquisition of the value-based primary care provider. Oak Street plans to expand to 300 locations by 2026 by opening 35 to 40 centers a year, CVS Chief Financial Officer Shawn Guertin said on a call with investors when the deal was announced in February. The provider currently has more than 170 locations in 21 states.

More than 90% of Oak Street clinics operate in underserved areas with average incomes below 300% of the federal poverty level, which is $43,740 for a single person, according to the company.

Oak Street did not immediately provide an executive to interview.