Amazon is taking another big step into the healthcare space, announcing its plans to acquire technology-forward primary care organization One Medical for a whopping $3.9 billion.
The move comes after Amazon has launched several healthcare ventures, including expanding its Amazon Care offering, which provides in-person and virtual services, to 20 cities. Amazon also launched a medication price comparison tool last year and teamed up with health insurers to offer prescription medicine options in some states. The online retail giant acquired online pharmacy PillPack for roughly $1 billion in 2019.
One Medical offers a combination of in-person, digital and virtual care services and is headquartered in San Francisco.
“We think healthcare is high on the list of experiences that need reinvention,” said Neil Lindsay, senior vice president of Amazon Health Services. “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.”
Under terms of the deal, Amazon will acquire One Medical for $18 per share in an all-cash transaction valued at approximately $3.9 billion, including One Medical’s net debt. 1Life Healthcare, Inc. is the administrative and managerial services company for the affiliated One Medical physician-owned professional corporations that deliver medical services in-office and virtually. Both 1Life and the One Medical entities do business under the One Medical brand. Share prices of One Medical soared 67% on Thursday upon news of the acquisition.
Completion of the deal is subject to customary closing conditions, including regulatory approval and approval by One Medical’s shareholders. Amir Dan Rubin will remain as CEO of One Medical upon completion.
“The opportunity to transform healthcare 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,” Rubin said in a statement. “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.”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."