Amazon Enters Healthcare Sector After Closing One Medical Acquisition
Amazon Enters Healthcare Sector After Closing One Medical Acquisition unknown
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A view of a One Medical office on July 21, 2022 in Oakland, California. Amazon announced plans to acquire health provider One Medical for an estimated $3.9 billion.
Amazon announced that it had closed its acquisition of 1Life Healthcare, the parent company of One Medical, for $3.49 billion. This deal was finalized after the US Federal Trade Commission (FTC) did not file an antitrust complaint.
One Medical's Offerings
This is Amazon's most significant foray into healthcare to date since the agreement provides the company with access to a group of primary care doctors.
One Medical's "in-office and 24/7 virtual care services, on-site labs, and programs for preventive care, chronic care management, common illnesses, and mental health concerns" will now be available via Amazon, the firms announced on Wednesday, Feb. 22.
A total of over 220 primary care clinics are owned and operated by One Medical in over 28 different states. In a report by Forbes, the locations offered a wide variety of primary care services. These include those provided by One Medical, direct primary care clinics, primary care offices catering to certain workforce groups, and senior health offices catering to Medicare-covered patients.
Access to its specialists and digital health services is offered to subscribers for a monthly charge.
After a period of transition, One Medical said on Wednesday that annual subscriptions at the reduced price of $144 for the first year would be offered to new customers. It is a savings of $50 off the standard price of $199. It would provide users with 24/7 virtual care through text or video and access to clinics in many cities.
See Also: Amazon's RxPass Gives Prime Members Affordable Access to Generic Prescription
The $3.49-Billion Acquisition
According to a Bloomberg story from Tuesday, Feb. 21, the FTC has opted not to dispute the $3.49-billion buyout. Instead, it is sending a letter to Amazon and One Medical, reminding them of the ongoing inquiry. With that hurdle cleared, Amazon was able to complete the purchase.
Notably, FTC is the agency that has been investigating Amazon's market strength for years.
In a statement, Neil Lindsay, head of Amazon Health Services, said that One Medical had set the standard for what an excellent, efficient, and cheap primary care experience should be like. Motivated by their human-centered, technology-forward approach, Lindsay said they are eager to support their expansion so that they can benefit more people.
Executives from both Amazon and One Medical have hinted at future service expansions now that their merger has concluded.
One Medical CEO Amir Dan Rubin said, "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."
In the Healthcare Sector
Amazon's interest in the healthcare industry is not new.
Amazon Clinic is a referral service that directs patients to partner physicians for text-chat consultations to treat common, generally minor ailments like hair loss and acne. Meanwhile, Amazon Pharmacy is built on the assets of the pharmacy company PillPack acquired in 2018.
Prime members may also utilize RxPass to get unlimited access to 50 generic medicines for over 80 chronic conditions. Hypertension, anxiety, and diabetes are examples.
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