Amazon completes $3.9 billion acquisition of One Medical

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Amazon has completed a $3.9 billion acquisition of primary care provider One Medical, the tech giant said on Wednesday.

The Federal Trade Commission has decided it will not challenge Amazon’s $3.9 billion One Medical deal, according to Politco.

WHY IS IT IMPORTANT

The closure marks another deal in the direction of healthcare retail, a trend Bain & Company predicts will continue to grow and consume about a third of the primary care market. Non-traditional players such as Amazon, CVS Health, Walgreens Boots Alliance and Walmart will own 30% of the primary care market by 2030, the consulting firm said in a report cited by the American Hospital Association.

Pharmacies and others compete on the convenience factor.

One Medical offers same-day and next-day visits, combined with 24/7 on-demand virtual care services, according to Amazon. It offers the One Medical app for on-demand video chats and Treat Me Now ratings for common health concerns, access to vaccines and medical records, prescription renewals, and proactive reminders for follow-up care and referrals.

It also has laboratories and programs for prevention, chronic disease management, treatment of common diseases, and mental health issues.

Together, Amazon and One Medical are committed to delivering exceptional healthcare to more people to achieve better health outcomes, a better care experience, and more value within a better care team environment, according to Amazon.

The business model is based on a paid annual membership. For a limited time, One Medical is offering an annual membership at a reduced price of $144 for the first year. The price is usually $199 per year. Membership covers on-demand and virtual care services, as well as insurance navigation and referral management.

Primary care providers can spend more time with patients than they would normally spend in a doctor’s office, Amazon says, to help address a person’s entire medical needs, from prevention to emergency care, chronic disease management, and mental health issues. Pediatricians and family care specialists are available in an increasing number of places serving children and families.

One Medical offers clinical and digital integration with US hospital networks.

“We are committed to making it much easier for people to find, select, provide and interact with the services, products and professionals they need to stay healthy, and working with One Medical is a big step forward. it’s a journey,” said Neil Lindsay, senior vice president of Amazon Health Services.

“If you fast forward 10 years, people won’t believe how primary health care was done,” said Amazon CEO Andy Jassi. “For decades, you called your doctor, made an appointment in three to four weeks, drove 15-20 minutes to the doctor, parked your car, made an appointment and waited a few minutes at the appointment, in the end you were put in an examination room where you waited another 10- 15 minutes until the doctor came, took you for 5-10 minutes and prescribed the medicine, and then you drove 20 minutes to the pharmacy to pick it up – and if you didn’t have to, then go to the doctor. specialist for further evaluation, where the process is repeated and may take even longer to be assigned.”

BIG TREND

In January, Amazon overcame obstacles to acquiring One Medical by securing approval from the Oregon Health Authority. Permission was needed because One Medical operates five clinics in the Portland area.

The acquisition was pending FTC approval.

Twitter: @SusanJMorse
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