The losses were due in part to significant growth in operational expenses, including higher medical claims expenses and cost of care in the quarter. The company has yet to be profitable and reported that its losses deepened during the quarter to $64 million, compared to a loss of $15.4 million in the first quarter of 2020, said Oak Street Health chief financial officer Tim Cook said Net earnings per share came to a loss of 29 cents.
Oak Street Health projects to bring in between $315 million and $320 million in revenue in the second quarter and grow its base of at-risk patients to at least 86,000. The company expects to operate at least 117 centers and up to 121 health clinics by the end of the year and bring in at least $1.3 million in full-year revenue, representing 47% growth over 2020 revenue.
RELATED: JPM21: Oak Street Health investing in tech, data science as it eyes further expansion of primary care clinics Despite widening losses in the quarter, Oak Street Health is projecting continued strong growth in 2021. The Chicago-based provider plans to open between 38 to 42 new health centers by the end of 2021 as it increases its pace of expansion, said Mike Pykosz, chief executive officer of Oak Street Health during its first-quarter 2021 earnings call Tuesday morning.
RELATED: Oak Street’s patients are most at risk from COVID-19. Here’s how its business is changing The company served 75,500 risk-based patients, up 37% from the same period a year ago and representing 69% of its total patients. Oak Street Health aims to grow its base of at-risk patients to around 112,000 by the end of the year. Oak Street Health now operates 86 clinics across 20 markets in 13 states, up from 54 primary care clinics a year ago.
Oak Street Health went public in August, raising $328 million. At its IPO, Oak Street Health’s shares began trading at $21. The company’s shares opened trading Tuesday at $52. The company’s quarterly results missed Wall Street estimates on earnings but beat on revenue.
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- Oak Street Health projects strong growth in 2021, despite the loss of $ 64 million in the first quarter
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