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Amazon completes $3.5 billion One Medical acquisition

por John R. Fischer, Senior Reporter | February 23, 2023
Business Affairs Health IT Telemedicine
Amazon.com has acquired One Medical for $3.5 billion.
Following the FTC’s decision not to challenge the deal, Amazon.com has completed its $3.5 billion acquisition of One Medical, the membership-based primary care service.

Through the deal, Amazon.com gains brick-and-mortar offices as well as access to One Medical’s 24/7 virtual and digital care offerings and in-person visit services, which surged in demand during the pandemic. It also expands Amazon’s presence in the primary, retail healthcare and telehealth markets, putting it on par with competitors like CVS Health and Walgreens.

For the first year, Amazon will discount One Medical membership from $199 to $144, regardless of whether an individual is a Prime loyalty subscriber.

“We’re on a mission to make it dramatically easier for people to find, choose, afford, and engage with the services, products, and professionals they need to get and stay healthy, and coming together with One Medical is a big step on that journey,” said Neil Lindsay, senior vice president of Amazon Health Services, in a statement.

While the FTC will not challenge the deal, it will send a pre-consummation warning letter of its concerns and watch for potential harm and how consumer data is used, reported Reuters.

Amazon previously launched virtual care visits for its own staff in 2019 before opening the services to other employers under the Amazon Care brand. It announced, back in 2022, plans to end the service in 2023.

Based in San Francisco, One Medical operates in 25 states and serves employees of some 8,500 companies. The acquisition was announced back in July 2022.

“It also wouldn't be a surprise to see Amazon's next healthcare play to boost its Amazon Pharmacy with a pharmaceutical acquisition — and beyond that, buying an insurance company as CVS Health did with Aetna,” said Insider Intelligence healthcare analyst Rajiv Leventhal at the time.

Several groups and individuals have opposed the deal, naming poor treatment of workers in other parts of Amazon’s business and possible equity concerns as reasons.

The deal was also scrutinized by the Oregon Health Authority before it gave its nod of approval in early January, albeit with some conditions attached.

“We now set our sights on delivering even further positive impacts for consumers, employers, care teams and health networks, as we join Amazon with its long-term orientation, history of invention and passion for reimagining a better future,” said Amir Dan Rubin, CEO of One Medical.

Rubin will continue in his role as CEO.

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