Amazon announced that it has entered an agreement to acquire One Medical, a human-centered, technology-powered U.S. primary care organization. One Medical, which went public in 2020, says it is on a mission to make quality care more affordable, accessible, and enjoyable through a seamless combination of in-person, digital, and virtual care services that are convenient to where people work, shop, and live.
I wonder what Amazon wants to do in healthcare but this tech company is on a mission to relevant to the average man or woman. It says it is striving to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. This is the third most significant and expensive acquisition in the annals of the company. It acquired Whole Foods Market in 2017 for $13.7 billion and Metro-Goldwyn-Mayer (MGM) for $8.45 billion in 2021.
Amazon’s entrance in healthcare began in 2018 with the acquisition of PillPack, a mail-order pharmacy that packages and delivers tablets by post, for about $753 million. It then launched an online pharmacy in 2020 delivering prescription drugs at discounted prices.
One Medical’s focus is on primary care and boasts virtually no wait times. Its $199 annual subscription offers 24/7 access to telehealth services, same-day appointments, and an app.
As at May 2022, the company reported that it had 188 U.S. locations and about 767,000 members.
Amazon acquires One Medical for $18 per share in an all-cash transaction valued at approximately $3.9 billion, including One Medical’s net debt. Amir Dan Rubin will remain as CEO of One Medical upon completion. However it is reported that the Carlyle Group which initially invested up to $350 million in 2018, will fully exit its position in One Medical.
According to Neil Lindsay, SVP of Amazon Health Services, “We think health care is high on the list of experiences that need reinvention. Booking an appointment, waiting weeks or even months to be seen, taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room then the exam room for what is too often a rushed few minutes with a doctor, then making another trip to a pharmacy – we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days.”
“We love inventing to make what should be easy easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years. Together with One Medical’s human-centered and technology-powered approach to health care, we believe we can and will help more people get better care, when and how they need it. We look forward to delivering on that long-term mission,” he added.
“The opportunity to transform health care and improve outcomes by combining One Medical’s human-centered and technology-powered model and exceptional team with Amazon’s customer obsession, history of invention, and willingness to invest in the long-term is so exciting,” said Amir Dan Rubin, One Medical CEO. “There is an immense opportunity to make the health care experience more accessible, affordable, and even enjoyable for patients, providers, and payers. We look forward to innovating and expanding access to quality healthcare services, together.”
Completion of the transaction is subject to customary closing conditions, including approval by One Medical’s shareholders and regulatory approval.
