Amazon completes $3.9B acquisition of One Medical

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Amazon has completed its $3.9 billion acquisition of primary care provider One Medical, the tech giant announced Wednesday. 

The Federal Trade Commission has decided it won't challenge Amazon's deal for One Medical, according to Politco.

WHY THIS MATTERS

The closing marks another deal in the move towards the retailization of healthcare, a trend Bain & Company predicts will grow to consume close to a third of the primary care market. Nontraditional players such as Amazon, CVS Health, Walgreens Boots Alliance and Walmart will own as much as 30% of the primary care market by 2030, the consulting company said in the report cited by the American Hospital Association.

Pharmacies and others compete on the convenience factor.

One Medical offers same and next-day in-office or remote visits, paired with 24/7 on-demand virtual care services, Amazon said. It offers a One Medical app for the on-demand video chats and "Treat Me Now" assessments for common health concerns, vaccine and medical-record access, prescription renewals, and proactive reminders for follow-up care and referrals.

It also has on-site labs and programs for preventive care, chronic-care management, common illnesses and mental health concerns.

Together, Amazon and One Medical look to deliver exceptional healthcare to more people to achieve better health outcomes, better care experiences and more value, within a better care team environment, Amazon said. 

The business model is based on paid annual memberships. For a limited time, One Medical is offering annual memberships at a discounted price of $144 for the first year. The price is regularly $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 what they traditionally get in a doctor's office, to help manage a person's full health needs from preventive to acute care, chronic disease management and mental health concerns, Amazon said. Pediatricians and family care providers available in a growing number of locations to serve children and families.

One Medical offers clinical and digital integrations with hospital networks across the United States.

"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.

"If you fast forward 10 years from now, people are not going to believe how primary care was administered," said Amazon CEO Andy Jassy. "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 10 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."

THE LARGER TREND

In January, Amazon cleared a hurdle in acquiring One Medical by getting approval from the Oregon Health Authority. Approval was needed because One Medical operates five clinics in the Portland area.

The acquisition awaited approval from the Federal Trade Commission. 

Twitter: @SusanJMorse
Email the writer: SMorse@himss.org