Oak Street Health buys virtual specialty firm RubiconMD for $ 130 million

On Thursday, Oak Street Health announced it has acquired RubiconMD, a startup that provides specialized telemedicine consultancy to primary care physicians.

A primary care provider acquired RubiconMD for $ 130 million in cash with the option to receive up to $ 60 million in additional cash or a combination of cash and stock, depending on milestones.

Oak Street, which went public last year, offers a capitulated model of care management for Medicare’s most needy patients. The company plans to integrate RubiconMD services so that its clinics can provide virtual specialist consultations, which will allow primary care physicians to manage patient care whenever possible and facilitate referrals as needed, the company said. news release…

Download the Modern Healthcare app to stay on top of industry news.

Founded in 2012 in Chicago, Oak Street has expanded to more than 100 primary health care centers in 18 states. The company’s revenues for the second quarter of this year were $ 353.1 million, up 64.7% from a year earlier, and a net loss of $ 100.3 million compared to a net loss of $ 26.8 million for the previous quarter. of the year. innings with the Securities and Exchange Commission.

Since its foundation, Dubovaya Street has been operated at a loss.

“The mission of Oak Street Health is to restore the health system to where it should be, and we do so with a focus on prevention and directing more resources to the primary health care facility,” said Mike Paikosh, CEO of Oak Street. in the press release. “RubiconMD’s technology platform and national presence allow us to scale the model to our current and future markets to advance our mission.”

According to the data compiled by the company, for the first three quarters of 2021. Digital health, business and technology… That’s compared to 132 digital health M&A deals in the first nine months of 2020 and 125 and 172 deals in the same periods of 2019 and 2018, respectively.

RubiconMD, startup, raised $ 37.9 million Since its founding in 2013, the company brings together more than 230 specialists in the field of cardiology, nephrology, pulmonology and other major specialties. It serves over 5,000 primary health care provider clients, primarily through eConsults, answering questions asynchronously through the company’s web platform.

According to presentation Dubovaya Street shared with investors on Thursday.

Oak Street is one of the growing players in the emerging market for the care of the elderly.

In June, primary care provider One Medical announced plans to acquire rival Iora Health for $ 2.1 billion in a deal that will help it gain a foothold in the Medicare Advantage market. In July, Anthem said it would partner with grocery chain Kroger to develop a co-branded Medicare Advantage product, and Humana said it plans to open new primary health care clinics for low-income seniors.