Amazon is stepping further into health care after closing its $3.9-billion acquisition of One Medical—aiming to capture profits in this ever-expanding sector.
Key Details
- Amazon completed its $3.9-billion acquisition of One Medical, which owns and operates more than 220 primary-care offices in 28 U.S. markets.
- One Medical had 836,000 members at the end of the fourth quarter, a 14% year-over-year increase, and made $1 billion in net revenue last year, a 68% increase from 2021.
- In its new capacity with Amazon, One Medical will offer a special discount of $144 for the first year of service, a typical price of $199 per year. The price will include “24/7 virtual care via messaging or video” and access to offices in “many cities,” and other services, Amazon reports.
Why it’s news
Health care has is just too big of an opportunity for Amazon to ignore. In July Amazon agreed to pay $3.9 billion for One Medical, a concierge-type primary-care service with nearly 200 medical offices in 25 markets. The deal will give Amazon the foothold into health care that so far it has been able to establish on its own.
“In a not-too-distant future, your Prime membership may include a free annual checkup,” suggest The Wall Street Journal.
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,” according to the companies.
Both Amazon and One Medical have a goal, and of making health care easier, faster, and more affordable for everyone, and with Amazon’s finances and business tactics, it will be able to grow One Medical substantially.
“Customers want and deserve better, and that’s what One Medical has been working and innovating on for more than a decade,” says Amazon CEO Andy Jassy. “Together, we believe we can make the health care experience easier, faster, more personal, and more convenient for everyone.”
Amazon and One Medical executives have alluded that more services will be available after everything is finalized to offer patients even more affordable healthcare services.
Others in health care
Amazon isn’t the only large retailer deepening its roots in health care. CVS Health, Walgreens, and Walmart have also been diving deeper into the market.
CVS has health care clinics with nurses for years but has recently begun rolling out clinics with doctors and plans to buy Oak Street Health for $10.6 billion later this year.
Walgreens has been opening hundreds of physician-staffed clinics with partner VillageMD, and Walmart has been opening clinics called Walmart Health Clinics across different states.
The health care market is becoming fierce, with more retailers stepping up to make a profit.
