Oak Street Health is going public.
The Chicago-based company filed its initial public offering with the Securities and Exchange Commission on Friday.
Oak Street is a tech-enabled, value-based care primary care company that specifically targets Medicare-eligible patients, particularly those in underserved communities.
It has 54 centers in 13 markets across eight states serving 85,000 patients with about 65% of those patients are under capitation agreements. The company has 2,300 employees including 250 primary care providers.
In its filing, officials said the Medicare-eligible population "represents the highest proportion of healthcare spending in the United States." Officials said they believe they are chasing a market of $325 billion based on an addressable market of Medicare eligibles of 27 million patients 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.
"We believe we have significant growth opportunities available to us, with less than 50% of our current aggregate center capacity utilized due to our recent center openings and a substantial opportunity to increase the number of centers we operate in new and existing markets," officials said in the filing.
Further, company officials said the model has proven to be scalable.
"We believe that we have created a repeatable, data-driven playbook to expand our brand and presence across the United States and we have made substantial investments to support each key component of our approach," they said in the filing. "The fundamental aspects of our playbook include an algorithmic approach to site selection based on our key criteria, a focused approach to recruiting and developing talent (including physicians, nurse practitioners, Care Team members, and regional leaders) and an efficient go-to-market model with grassroots community outreach to engage and attract patients."