Amazon is expanding its healthcare offerings by acquiring One Medical, a tech-powered primary care provider.
Amazon will pay $18 per share in an all-cash acquisition valued at about $3.9 billion, including One Medical’s net debt. The transaction is subject to typical closing conditions, including shareholder approval and regulatory approval. Amir Dan Rubin will remain CEO of One Medical as part of the arrangement.
In a news release, Neil Lindsay, senior vice president of Amazon Health Services, stated, “We feel that health care is high on the list of experiences that deserve innovation.” “We see a lot of chances to improve the experience while also giving people back vital time in their days.” “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 often a rushed few minutes with a doctor, then making another trip to a pharmacy — we see a lot of opportunity to both improve the quality of the experience and give people valuable time back in their days.”
One Medical offer in-person, digital, and virtual care.
“The opportunity to innovate health care and improve results by combining One Medical’s human-centered and technology-powered approach and exceptional team with Amazon’s customer focus, history of creativity, and long-term investment commitment is very exciting,” Rubin said in a news release. “There is enormous potential to make health care more accessible, affordable, and even enjoyable for consumers, providers, and payers.”
Amazon’s pharmacy service, which debuted in 2020, offers a selection of over-the-counter personal care goods in addition to general commodities in this category. However, it has failed to overtake Walmart. It has remained stuck at a market share of around 4% for almost two years.
