Amazon has acquired One Medical, a membership-based primary care provider, for $3.9 billion, as part of its ongoing effort to expand its presence in the healthcare industry.
The news:
Amazon has acquired One Medical, a membership-based primary care provider, for $3.9 billion. One Medical provides digital health services and has physical locations in several major U.S. cities, including New York, San Francisco, and Washington, D.C.
Why it matters:
Amazon’s acquisition of One Medical is part of the e-commerce giant’s ongoing effort to expand its presence in the healthcare industry. The move will give Amazon a new platform to offer healthcare services and further integrate into the healthcare ecosystem. Additionally, One Medical’s partnership with local healthcare systems and insurance providers could help Amazon build relationships with key players in the industry.
The details:
One Medical’s services include telehealth visits, in-person primary care, and specialty care referrals. Members pay a fee for access to these services, and One Medical has been growing rapidly in recent years. Ending 2022, the company reported $1.046 billion in revenue, a 68% increase from the previous year, and had 836,000 members.
Amazon’s acquisition of One Medical is subject to regulatory approval. The FTC has decided not to challenge Amazon’s acquisition of One Medical, according to a Bloomberg report. Amazon and One Medical have stated that they expect the deal to close in the second half of 2023.
However, the Federal Trade Commission (FTC) is currently reviewing the deal and has requested additional information about the acquisition, indicating it may scrutinize the deal closely.
What they’re saying:
“The FTC’s investigation of Amazon’s acquisition of One Medical continues,” said FTC spokesman Douglas Farrar. “The commission will continue to look at possible harms to competition created by this merger, as well as possible harms to consumers that may result from Amazon’s control and use of sensitive consumer health information held by One Medical.”
SVP of Amazon Health Services, Neil Lindsay, said, “We think health care is high on the list of experiences that need reinvention…. we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days.”
“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,” said Amir Dan Rubin, One Medical CEO.
The American Economic Liberties Project previously stated: “Amazon has no business in healthcare.”
“Allowing Amazon to control the health care data for another 700,000+ individuals is terrifying,” said Krista Brown, a Senior Policy Analyst at the American Economic Liberties Project. “Acquiring One Medical will entrench Amazon’s growing presence in the health care industry, undermining competition. Amazon has no business being a major player in the health care space, and regulators should block this $4 billion deal to ensure it does not become one.”
What’s next:
If the acquisition is approved, Amazon could use One Medical’s platform to expand its healthcare services, including virtual care and prescription delivery. This could further Amazon’s efforts to disrupt the healthcare industry and provide consumers with more convenient and accessible healthcare options.
The acquisition of One Medical is just the latest move in Amazon’s push into healthcare. The company has also launched Amazon Pharmacy, a prescription delivery service, and Amazon Care, a virtual care program for Amazon employees.
The forecast:
In 2023, healthcare companies must prioritize patient data safety by implementing robust security measures, including HIPAA compliant email and other technologies that can help safeguard sensitive patient information. By doing so, healthcare companies can help ensure that patients’ personal health information remains secure and protected in an increasingly digital healthcare landscape.
Sharing private patient data with third-party companies is a growing concern in the healthcare industry. Regulators are likely to look closely at companies that engage in these practices, especially in light of Cerebral’s breach of patient trust.
Dean Levitt
