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Home»Health»Amazon Achieves Closing Of One Medical Deal, Officially Entering Doctor Clinic Business
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Amazon Achieves Closing Of One Medical Deal, Officially Entering Doctor Clinic Business

February 22, 2023No Comments4 Mins Read
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Amazon Achieves Closing Of One Medical Deal, Officially Entering Doctor Clinic Business
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FILE – This Sept. 6, 2012, file photo, shows the Amazon logo in Santa Monica, Calif. T(AP Photo/Reed … [+] Saxon, File)

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistribu

Amazon Wednesday closed its $3.9 billion acquistion of One Medical, bringing the giant online retailer into the hotly competitive business of owning primary care physcian practiecs.

The deal means Amazon will now provide 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,” the companies said Wednesday.

“If you fast forward 10 years from now, people are not going to believe how primary care was administered,” Amazon CEO Andy Jassy said. “For decades, you called your doctor, made an appointment three or four weeks out, drove 15-20 minutes to the doctor, parked your car, signed in and waited several minutes in reception, eventually were placed in an exam room, where you waited another 10-15 minutes before the doctor came in, saw you for five to ten minutes and prescribed medicine, and then you drove 20 minutes to the pharmacy to pick it up—and that’s if you didn’t have to then go see a specialist for additional evaluation, where the process repeated and could take even longer for an appointment.”

“Customers want and deserve better, and that’s what One Medical has been working and innovating on for more than a decade,” Jassy added. “Together, we believe we can make the health care experience easier, faster, more personal, and more convenient for everyone.”

Amazon’s proposed acquisition of One Medical comes during a period of unprecedented competition for primary care doctor practices with Walgreens opening hundreds of physician-staffed clinics with partner VillageMD while Walmart launches its doctor-staffed clinics under the Walmart Health brand in several new markets.

Meanwhile, CVS Health, which has long staffed its more than 1,100 in-store clinics with nurse practitioners is also rolling out more primary care models that include physicians and earlier this month announced plans to buy Oak Street Health for $10.6 billion in cash, adding a large network of doctor-staffed clinics primarily used by seniors.

There had been some speculation the Amazon-One Medical deal would be delayed or derailed by antitrust concerns from state regulators or investigators from the Federal Trade Commission, but that proved not to be the case.

Under new ownership, One Medical unveiled a special discount Wednesday, offering “annual memberships at the discounted price of $144 for the first year.” The memberships, which are regularly $199 per year, include “24/7 virtual care via messaging or video” and access to offices in “many cities,” and other services.

“We’re on a mission to make it dramatically easier for people to find, choose, afford, and engage with the services, products, and professionals they need to get and stay healthy, and coming together with One Medical is a big step on that journey,” said Neil Lindsay, senior vice president of Amazon Health Services.

Amazon and One Medical executives hinted there would be more services to come with the combination now officially closed.

“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,” One Medical chief executive Amir Dan Rubin said.

Amazon hasn’t said whether it will use this deal as a beachhead to add more physician-staffed clinics as rivals CVS, Walgreens and Walmart are doing.

With Amazon’s backing, One Medical will have a huge financial war chest to expand deeper into a primary care market that already includes well-capitalized hospitals and health systems that are buying up doctor practices along with the new retail rival entrants.

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