On Thursday, July 21, Amazon announced that it would acquire primary-care provider One Medical as the company leaps into healthcare.
Amazon Buys One Medical
According to Bloomberg, the e-commerce giant will purchase the health-clinic operator for $18 per share in a deal that values the medical company at $3.9 billion.
One Medical rank among Amazon's biggest acquisitions, along with its purchase of MGM Studios for $8.5 billion and Whole Foods for $13.7 billion.
One Medical promises to take some of the drudgery out of getting seen by a doctor by offering its customers a range of medical services for $199 a year.
The medical company offers 24/7, on-demand virtual care, and customers can use the company's app to make same-day or next-day appointments for in-person visits.
One Medical also cares for senior citizens in the United States Medicare program after acquiring eldercare pioneer Iora Health.
As of March, One Medical is available in 188 locations across the United States, and it has served around 767,000 members.
Neil Lindsay, senior vice president of Amazon Health Services, said in a statement that "health care is on the list of experiences that need reinvention," and that they see a lot of opportunities to improve the quality of the experience of their customers and give people back valuable time in their days.
This is not the first time Amazon has dipped its toes in the healthcare sector. The e-commerce giant bought mail-order pharmacy PillPack in 2018 for $750 million.
The company is creating its own medical operation called Amazon Care, which offers virtual consultations and at-home visits from doctors and medical professionals.
In early July, Bloomberg reported that CVS Health, which runs a pharmacy chain and offers health insurance, had expressed interest in purchasing One Medical. However, CVS decided against a deal, but One Medical was looking for other offers.
Amazon Care Services
In March 2021, Amazon rolled out its telehealth service in all 50 states for its employees. The service was expanded to other cities by the end of 2021.
In December 2021, Business Insider reported that Amazon was incubating Amazon Care as a business for other companies and undertaking an expansion nationwide.
In-person services of Amazon Care, like home visits by medical professionals, will be available in Washington DC.
The company plans to add in-person services to cities including Washington DC, its second headquarters, and Baltimore in 2022.
This is the first time that the e-commerce giant has clarified the purpose behind Amazon Care, which is not only to serve Amazon's employees but also to be a lucrative healthcare business in the trillion-dollar healthcare industry while solving for other employers' shared costs.
This also marks the first time that the $1.6 trillion company has put a stake in the ground in healthcare delivery, not just devices and medical bills, according to CNBC.
America's healthcare industry is now taking notice of Amazon's medical care ambitions. After the national expansion of Amazon Care became official, telehealth company Teladoc sank 7%, while Amwell sank 5%.
This article is owned by Tech Times
Written by Sophie Webster
